The International Monetary Fund has warned that the steel and aluminium tariffs announced by US President Donald Trump will harm the US and global economies.
IMF spokesman Gerry Rice said, the import restrictions announced are likely to cause damage not only outside the US but also to the US economy itself. He said the move raises fears other countries could use national security rationale to justify broad-based import restrictions.
Earlier, the World Trade Organisation, WTO had expressed concern over US President’s decision. WTO Director-General Roberto Azevedo said in a statement that a trade war would be in no one’s interest. Meanwhile, European Union officials have said they will respond firmly if Trump presses ahead with his plan for steep global duties on metals. On Thursday, the US President announced plans to impose 25 percent tariff on steel imports and 10 percent on aluminium next week.
Europe pushes back against Trump’s steel and aluminum tariffs
Meanwhile the European Union has said it will introduce retaliatory measures against US plans to impose steel and aluminum tariffs. The WTO and IMF have voiced their concerns over US President Donald Trump’s threat of a trade war.
The President of the European Commission Jean-Claude Juncker (L) talks with US President Donald Trump prior to a working session during the G20 summit in Hamburg, northern Germany, on July 8, 2017.
European Commission President Jean-Claude Juncker on Friday accused US President Donald Trump of exhibiting “war-like behavior,” after Washington announced it would impose punishing tariffs on steel and aluminum imports.
“None of this is reasonable, but reason is a sentiment that’s very unevenly distributed in the world,” Juncker told reporters in the German city of Hamburg.
On Friday morning, Trump doubled down on his tariff proposals, tweeting: “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!”