Washington/Brussels/Beijing: United States President Donald Trump gave clear warning of a trade war by imposing tax on the import of steel and aluminium. The warning by Trump has evoked severe reactions from the world over and China, the European Union (EU) and Canada have warned of an equivalent reply to the US. The analysts and economists are expressing fears of an international trade war.
President Trump announced huge taxes on the import of steel and aluminium on Thursday night. As per the announcement by the US President, a tax of 25% and 10% will be imposed on import of steel and aluminium respectively. It was revealed last week that the US Department of Commerce had recommended imposition of tax from the state’s security point of view. Trump had supported the imposition of import tax during his Presidential campaign and even afterwards.
The US President declared through a tweet on Friday morning that the US was stepping into a trade war. ‘The United States is suffering losses of billions of dollars in trade with its major trade partners. Trade war is good and can be won easily. If the United States is suffering losses of a 100 billion in trade with a certain country and the partner country is benefited, it is better to stop trade with such a country. The United States alone will emerge victorious in this. This is very easy’, with these words Trump declared a trade war.
This trade war warning by the United States President has evoked severe reactions from around the world. The Chinese Foreign Ministry warned, ‘if every country decided to behave like the United States, it will have very serious effects on international trade’. Jean Claude Juncker, the President of the European Union warned that Europe will not keep quiet after this action of the United Sates and preparations for a fitting reply are already being initiated.
Canadian Prime Minister Justin Trudeau, assured that necessary steps will be taken to protect the Canadian industry, while he expressed displeasure on the US President’s decision. The International Monetary Fund (IMF) has warned that this action by the United States president will have effects not only on the US economy but also on the trade of major countries. World Trade Organisation (WTO) has warned the United States that a trade war will not be beneficial to anyone.