US faces trade backlash as Trumps set to raise import tariffs on steel, aluminum

WASHINGTON, March 1 (APP):The United States is expected to face a severe backlash from its global trading partners, including the European Union, after President Trump announced plans to slap steep tariffs on imports of steel and aluminum to protect the local industry.
China has reportedly threatened to block imports of US soybeans and the country’s major trading partner, the European Union, has threatened commensurate actions.
Neighboring Canada said that President Trump’s decision was unacceptable.
The Dow Jones stock exchanges industrial average lost 420 points, or a 1.7 percent decline, following a statement by President Trump on Thursday to raise tariff on steel by 25%, and on aluminum, by 10%.
He made the announcement during a meeting with executives of some 15 steel and aluminum companies.
The decision immediately drew criticism from both his Republican Party as well as opposition Democrats.
President Trump appeared adamant on Friday in the face of global criticism and a tirade back home, saying trade wars were easy to win.
The US imports steel from more than 100 countries, four times more than what it exports.
“When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win. Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!” President Trump tweeted.
President Trump has used tweets to announce major political, economic and foreign policy decisions.
The announcement immediately drawn reaction from his party with Senator Orrin Hatch, Chairman of the Senate Finance Committee describing it a tax hike on the American people.
The online influential political magazine The Hill reported that car maker Toyota and beer brewing company MillerCoors said they would be compelled to raise prices of their products.
Chairman of Senate’s Agriculture Committee, Republican Senator Pat Roberts said the decision was “terrible counterproductive” and warned of a retaliatory move that would hurt US agriculture exports.
During his election campaign for the office, which he eventually won defeating Democrat Hillary Clinton, the then candidate Trump had voiced concern over countries “dumping” amounts of steel in the US which, he said, was killing the local industry.
The US industry is recovering from a slum it faced following the 2008 financial crisis but the output still remain significantly low. The industry produced 86.5 million tons of steel in 2016, down from 112 million tons it produced in the year 2000.
He has also criticized in the past “cheap” import from China, which is US 11th biggest exporter. His comments to raise import tariff came amid a visit by Chinese economic adviser Liu He to Washington.