An article by Cebr’s Head of Trade, Shanker Singham and Managing Economist, Kay Neufeld

 

“In a last-minute move, President Trump granted several key allies exemptions from the steel and aluminium tariffs that came into effect last week. Apart from the Nafta countries Canada and Mexico, the US added EU member states, Brazil, Argentina, Australia and South Korea to the list of countries at least temporarily exempt from the tariffs.

 

This means that over two thirds of steel imports by value are now exempt from the tariffs. The move reveals Mr Trump’s true intentions: intimidating countries by threatening tariffs in order to get them to the negotiating table. His surprise announcements are part of a strategy which aims to force countries into compliance: do as the US says, or else.

 

President Trump’s tariffs on steel and aluminium under the provisions of section 232 of the Trade Act are a harbinger of a new American trade policy, which no longer sees itself bound by the norms of traditional international trade policy. Highly protectionist measures are once again popular in the highest circles of the US administration as Trump seems determined on delivering on his promise of America first.”

 

 

View the full article here.