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U.S. steel aluminum tariff policy triggered worries

 Date:2018-06-25 16:50:44
The U.S. imposes tariffs on steel and aluminum in many countries and is making the probability of an outbreak of full-scale trade conflicts growing. Its targets include the United States’ traditional allies such as the European Union and Japan, and Canada, Mexico’s two major neighbors and the world’s economic powerhouse. China. In this regard, foreign media believes that a capricious government will be the biggest problem for the U.S. economy, affecting all aspects of the U.S. economy; international organizations will also warn of the adverse effects of trade wars or turmoil; U.S. companies are also uneasy about trade wars. . Foreign media uneasy The United States has tried to exert pressure on its major trading partners by imposing tariffs on steel and aluminum, thereby gaining the opportunity to renegotiate trade agreements and to obtain greater benefits for the United States. However, so far, the major trading partners and neighboring countries of the United States have not been willing to submit easily. They have come up with countermeasures against the irrational behavior of the United States and the smell of the trade war has become increasingly strong. In response, foreign media, including the United States, have issued comments and expressed their anxiety. The "Washington Post" believes that the U.S. practice is by far the most risk-taking step in Trump's "U.S. priority" strategy. This aggressive move has made U.S. business leaders and even the Republican Party feel uneasy inside. "USA Today" published an article pointing out that with the intensified trade disputes between the United States and trading partners, the potential threat to impose tariffs on U.S. consumer property is far more than just paying a little extra for a piece of steak and a TV set. degree. The US “Capitol Hill” quoted John Murphy, vice president of the American Chamber of Commerce, as saying that the U.S. government’s move meant that in the first week of July, the U.S. will have a total value of 75 billion U.S. dollars worth of goods that will receive retaliatory tariffs from many countries around the world. influences. The U.S. government’s practice has not only caused media skepticism in the country, but has also been widely criticized by international media. Many media have expressed concern about the negative impact that the US provoked trade war may have on the world economy. British "Financial Times" said that the United States and Canada will impose tariffs on domestic companies. According to an analysis by the Financial Times in the United Kingdom, this move by the U.S. government will disrupt the entire industry chain and make U.S. companies highly dependent on the global division of labor the biggest victims. "Nihon Keizai Shimbun" reported that the trade war provoked by the United States is expanding to the whole world, which brings a huge downside risk to the global economy. The foreign media stated that if Trump further promotes protectionist measures, it may trigger selling pressure on the stock market, thereby hurting corporate and consumer confidence. International agencies have warned Regarding the United States’ obstinate behavior and the stalemate with many important trading partners, international organizations and financial institutions have issued possible assessments of the trade war and warned of the economic damage caused by the trade war. The Organisation for Economic Co-operation and Development said that the possibility of a trade war threatened the prospects for global economic growth, after which the world was expected to hit the lowest unemployment rate in 40 years. The risk of a trade war is the primary risk of the global economy. The current global economic interdependence is higher than ever before. Although the number of trade restrictions has been increasing in the past decade, further actions may cause serious economic growth drag. The organization predicts that if the United States, the European Union, and China increase tariffs and the cost of trade increases by 10%, the world economy will decline by 1.4%. The International Monetary Fund (IMF) issued a report on the US economic policy assessment warning that the U.S. government's adoption of tariffs and other trade restrictions on import measures will pose risks to the global economy and the trading system. The IMF stressed that the global economy needs to be based on an open, fair, and rules-based trading system. However, U.S. trade policies and measures have raised concerns of all parties. All parties are concerned that these measures will have a negative impact on the United States and its trading partners. . The IMF warned that the U.S. government has rarely used "national security" to defend the import of steel and aluminum products and potential import vehicle tariffs, which opened up a bad head. Other countries may imitate the United States and impose barriers on imports. The rules-based global trading system will be destroyed. The IMF called for "The United States and its trading partners should take constructive actions to lower trade barriers and resolve trade and investment disputes rather than setting up barriers." According to IMF economists, the Trump administration's focus on the trade deficit between the United States and some countries is dislocated, and the trade deficit “should not be a target”. In addition, the report believes that the US substantial tax cut will stimulate domestic economic growth in the short term, but it will increase the long-term risks of the domestic economy and the global economy. IMF President Lagarde also stated that the unilateral trade action taken by the United States is destructive and is not conducive to the operation of the global economy and trade system. Scotiabank issued a report that the U.S. tariff action will hit the Canadian and Mexican economies and reduce the Canadian economy by 1.8%. The United States will damage multiple parties The US-initiated trade war will also harm the United States itself. The International Monetary Fund said that "trade warfare" is also a risk factor for the U.S. economy. If the U.S. and partner countries are caught in a retaliatory campaign to increase tariffs, "it will be a factor that will lower investment both inside and outside the United States." U.S. business leaders said that when in July such countries as the European Union, Canada, and Mexico announced simultaneous retaliatory tariffs on the United States, the U.S. retailers, farmers, and auto workers ... all U.S. workers involved in the global value chain will have interests. In danger. According to internal data from the National Chamber of Commerce in the United States, the United States will reduce more than 600,000 jobs due to the US-EU-China trade war. Scotiabank’s report also believes that in the case of radical protectionism, the United States’ economic growth in 2020 will shrink by 0.1 percentage point. The U.S. Apparel and Footwear Industry Federation stated that the retaliatory measures of various countries may harm the interests of U.S. farmers and textile manufacturers, and increase the cost of the apparel and footwear industry supply chain. The President of the Federation, Rick Helfen Bein, said that President Trump is obsessed with tariff measures. He believes that he can freely wield tariffs, but the use of this measure will have serious consequences. The Congress must now step in and end this dangerous obsession. Ford Motor Company stated that it hopes that the U.S. and other governments will work together through the negotiations to solve the problems. U.S. semiconductor industry professionals believe that Trump’s trade war will damage U.S. companies and weaken U.S. competitiveness. Many companies in the semiconductor industry are deeply disgusted at the involvement in the trade war. They think that the impact of the trade war will spread to chip makers involved in complex supply chains. Some U.S. companies will therefore be subject to tariffs imposed on their own products. The IT industry association believes that tariffs may increase consumer costs for products such as computers and mobile phones. Kentucky’s House of Representatives, James Coomer, supported Trump’s taxation but feared that the state’s agriculture would be severely hit. Kevin Brady, chairman of the House Committee on Fundraising, believes that adding tariffs will seriously affect the export of "Made in the United States" to the world. Many industries will suffer "destructive retaliation", especially agricultural products and chemicals. The U.S. Chamber of Commerce, the National Association of Retailers, the National Association of American Manufacturers, the American Soybean Association and other industry associations have issued statements expressing their opposition to the use of tariffs as a means to solve economic and trade issues. Wall Street analysts and economists pointed out that if the trade disputes cause the U.S. economic growth to slow down, the U.S. job market will be affected and the U.S. family property will suffer losses; trade disputes will also offset the December tax cuts for the U.S. The economic growth comes. They believe that if trade disputes intensify and a global trade war breaks out, workers' portfolios and employment opportunities may be put at risk. The great risk lies in whether President Trump’s first round of strikes in tariff conflicts will trigger retaliation from other economies, leading to out-of-control conflicts and damaging investors and business executives’ confidence in the economy and the market. Source: Economic Reference, for learning and communication only Not for business.