A statue of a steel worker stands near the entrance to U.S. Steel Edgar Thomson Steel Works, March 10, 2018 in Braddock, Pennsylvania. Drew Angerer/Getty Images/AFP
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
President Donald Trump's announcement Thursday that the United States would impose heavy tariffs on imported steel and aluminum – with some countries potentially exempted – suddenly raised a fear that few had anticipated: That U.S. tariffs could trigger a chain of tit-for-tat retaliation by America's trading partners that could erupt into a full-blown trade war and possibly threaten the global economy.It remains far from clear how, exactly, the Trump administration's tariffs will be applied, which countries will be subject to them or how economically damaging the retaliation from the affected nations might prove. The president announced 25 percent tariffs on foreign steel and 10 percent tariffs on foreign aluminum. Economists at Barclays Bank warn that this "Goldilocks scenario – solid, steady economic expansion, but not so fast as to ignite inflation – could reverse in the aftermath of Trump's tariff announcement. The tariffs themselves aren't the main problem. S&P Global Ratings notes that the United States last year imported $29 billion worth of steel and $17 billion of aluminum – a trifle given that U.S. goods imports totaled $2.4 trillion last year.Rather, the worry is that a widening trade war with layers of retaliatory tariffs would depress global trade, which grew 4.2 percent last year, the most since 2011, on the fuel of the global economy.
FOLLOW THIS ARTICLE