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Trump announces tariffs with exemptions for Canada, Mexico President Donald Trump said on March 8, 2018 he would announce tariffs on imported steel and aluminum but with temporary exemptions for Canada and Mexico as he seeks to revise the North American Free Trade Agreement (NAFTA). He suggested Australia and “other countries” might also be spared, a shift that could soften the international blow amid threats of retaliation by trading partners. “We’re going to be very fair, we’re going to be very flexible but we’re going to protect the American worker as I said I would do in my campaign,” Trump said during a Cabinet meeting. Ever since Trump announced he would levy tariffs of 25 % on imported steel and 10 % on aluminum that caused Gary Cohn resignation as Top Economic Adviser and protest by our neighbor countries, Canada and Mexico. Trump maybe protected steel and aluminum workers but raise the tariff will increase the cost for Boeing and 3 major U.S. automobile companies. Because they use steel and aluminum a lot. So, Trump announced tariffs exemptions for Canada and Mexico. The U.S. trade deficit with China was $375 billion in 2017. The trade deficit exists because U.S. exports to China were only $130 billion while imports from China were $506 billion. Obviously, Trump targeted China for a "Trade War" due to "Trade Deficit". Originally Trump thought that China is the one dumped steel and aluminum to US and turned out China is only at 11th place of steel exported to US. China can produce many consumer goods for lower costs than other countries can. USA imports consumer electronics, clothing and machinery from China. However, China purchases airplanes from Boeing. If raised tariff on steel will increase the cost of Boeing to produce airplanes, Trump made big mistake. Mr. Gary Cohn is favor of "Global Free Trading". Wall Street likes Mr. Gary Cohn who came from Goldman Sachs. So, when Mr. Cohn announced resignation (disagreed with Trump raised tariffs) that caused stock market panic selling. As we saw on TV that Mr. Gary Cohn was absent at White House, when Trump invited steel and aluminum workers to White House for the ceremony of Trump signing "Executive Order" for levy tariffs into law. Now Trump back down tariffs with exemptions for Canada and Mexico only. Honesty is the best policy. |
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The European Union (EU), Australia, Argentina, Brazil and South Korea will get a temporary exemption from the steel and aluminum tariffs the Trump administration is imposing, U.S. Trade Representative Robert Lighthizer told a Senate hearing. Notably, that means Japan will not get an exemption. Published: Mar 22, 2018 12:31 p.m. ET Honesty is the best policy.
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Tariffs could lead to a destructive trade war with serious consequences for U.S. economic growth and job creation," according to Chamber of Commerce President Thomas Donohue. "Tariffs of $30B a year would wipe out over a third of the savings American families received from the doubling of the standard deduction in tax reform. If the tariffs reach $60B... the impact would be even more devastating. And yet, President Trump wants to levy tariffs to $60 billions. Honesty is the best policy.
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Thylene, You said I am very detail. Okay, please take a look of Boeing (BA) price today that down $10.33. Just as I predicted that Boeing. I am in stock investment, so need to be very alert what Trump wants to levy tariffs consequences, good for steel and aluminum but bad news for Boeing and 3 automakers. You know there are only two companies in the whole world that make airplane. One is Boeing in USA and another is Airbus in France (multinationals in Europe). So, if China wants to retaliate Trump, they will buy from Airbus in the future. I told you, I knew it. The #1 U.S. money-making company is Boeing. You know China have no ability to make airplane or automobiles. Yes, they have some cheap cars that they make, but those cars are not safe. So, some Chinese may buy those cars but no other countries will buy those cars made in China. Chinese is NOT creative, but they have "cheap labor" and large population. They think they are the top #2 economic country. The problem is they only produce clothes, eyeglasses, toys, CD, DVD, .... copycat from the brand name companies. They don't respect "copyright". Do you know how many those products for them to make to equal a Boeing 737, 747, or higher airplanes. Look the stocks of McDonald(MCD) and Walmart(WMT) that sharply dropped and those two companies are not steel or aluminum related. But stock investors fear about China's retaliation that they won't eat at McDonald and Walmart imported so many Chinese cheap products, what if Trump extends to increase tariffs for other items, clothes, CD's, DVD's, Walmart will increase its cost and eventually go to U.S. consumers. McDonald, KFC, Pizza Hut, have many stores in China. On the contrary, Google has been kicked-out of China for more than 10 years. Chinese don't use Google search engine, Google Maps, Google Translate, YouTube, Google Earth, Gmail, Google Shopping, Google Android system for smartphones,.... So, there is no way Chinese can retaliate Google. I use Google everyday and love it. Google is very smart company. Google owns "Waymo" that make "self-driving cars". Although it is still "prototype" but in few years will be available. I am waiting to buy those autonomous cars. What an amazing inventor!!! Have you think all of these things? Honesty is the best policy.
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I know that. If Trump levy tariffs on everything, then all the imported goods prices on U.S. consumers eventually. I do know that. That is why Apple, Inc. factory in China has not removed from China to USA just yet. Currently Trump only mentioned raised tariffs on "steel" and "aluminum" that already caused damages. You can image if he raised all the import goods. Trump is selectively to target on China because the "trade deficit". My this blog talked about Trump "steel" and "aluminum" tariffs that might incur "trade war". I am watching stock market so I pretty much know the most current news. Honesty is the best policy.
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Trump hoping to use his steel tariff plan as a global bargaining chip. The levies tariffs take effect in 15 days. It is good news for steel and aluminum workers and companies, but it is a bad news for Boeing and 3 major auto makers (GM, Ford and Chevrolet). I hope this levy tariffs won't cause "retaliation" or "trade war". Because Boeing and 3 major auto makers are very important exporter companies for USA. Honesty is the best policy.
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