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Are We Headed Toward a Trade War and What Would That Mean?

Are We Headed Toward a Trade War and What Would That Mean?

Major trading partners of the United States expressed both commercial and systemic concerns about its tariffs plan on Wednesday and said they feared tit-for-tat trade actions, a World Trade Organization (WTO) spokesman said, Reuters reports.

The ambassador would not be drawn on whether Switzerland would sign up to such a complaint, adding simply "we intend to defend our interests and it will depend on how far this measure goes".

Britain, keen to foster global trade relations as it prepares to leave the European Union, said it was "very disappointed" by Trump's plan.

"We're doing tariffs on steel".

Last year Rio Tinto and the other aluminium producers in Canada exported a combined 2,759,000 metric tons of aluminium, valued at over USA $5.6 billion, to the U.S.

That "collateral damage" could come if other countries retaliate against Trump's higher tariffs by imposing similar new levies on American exports. The relief program is shown as a straw scarecrow scaring off hard times depicted as birds. Although it did not cause the onset of the Great Depression, it did help extend it.

"But again, (with) other countries, we won't have that choice". Leaders from around the world reacted with alarm and threatened a trade war with the possibility of raising tariffs on American-made products such as Harley motorcycles, Kentucky bourbon, and blue jeans.

Ryan said he agreed with Trump that some countries are engaging in unfair trade.

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The tariffs are indefensible on their face.

America used relief from tariffs as a bargaining chip.

He said the Mexican government was now analyzing which U.S. exports it would tax. "So you had then a whole group of reciprocity agreements negotiated in between 1935 and 1941".

Last week Kitimat Unifor Local 2301 president Sean O'Driscoll said Unifor representatives would be meeting with the provincial energy and trade ministers in Victoria to lobby on behalf of BC Works members and the community.

For those who fear a trade war, the candidates to replace Cohn as Trump's adviser do not bode well: Peter Navarro, the White House National Trade Council head who wrote a book called "Death by China: Confronting the Dragon - A Global Call to Action", and conservative commentator Larry Kudlow.

Cecilia Malmström, the EU's trade commissioner, has insisted that the planned retaliatory measures would be "completely legal" and said that the European Union would "calibrate" its response in accordance with WTO rules. Therefore, he says that he and most other economists are in agreement that "what Trump has done is a mistake".

Trump held out the prospect that close USA trading partners Canada and Mexico could avoid the steep tariffs if they reached a deal with the United States in the renegotiation of the North American Free Trade Agreement.

Colin Robertson, a former Canadian diplomat, writing in The Globe and Mail, says Canada and other countries threatened by the Trump tariffs should be drawing up a common list of USA exports that they could target with retaliatory action. And at home, the tariffs will drive up the price of steel for American companies that use it, potentially leading to fewer jobs in the industries Trump claims he is protecting.