Trump says he will reimpose steel and aluminum tariffs on Brazil and Argentina, opening new trade war

Washington Post ^ | 12/02/2019 | By Rachel Siegel and Terrence McCoy

[SeekAndFind]

President Trump said he would impose tariffs, effective immediately, on all steel and aluminum shipped into the United States from Brazil and Argentina.

“Brazil and Argentina have been presiding over a massive devaluation of their currencies. which is not good for our farmers,” Trump said in Monday morning tweet. He then directed his attention to the Federal Reserve, saying the central bank should “act so that countries, of which there are many, no longer take advantage of our strong dollar by further devaluing their currencies. This makes it very hard for our [manufacturers] & farmers to fairly export their goods. Lower Rates & Loosen — Fed!”

The surprise announcement came after it appeared as though the White House was preparing to dial back its adversarial trade approach in the lead up to next year’s election. The administration appeared close to a deal with House Democrats to revamp the North American Free Trade Agreement, and tensions with China had eased in recent weeks.

The tariffs took aim at one of the most vital industries in Brazil at a particularly vulnerable moment. Unemployment is above 10%, and the economy has stalled. The steel industry, long one of the nation’s economic engines, has been looking increasingly wobbly as well, slashing growth projections earlier this year.

Brazilian steel exports to the U.S. accounted for roughly $2.6 billion last year — making the United States one of Brazil’s biggest markets for steel — and analysts expected the tariffs to be painful.

In Argentina, where steel and aluminum exports represent roughly $700 million, the unexpected news comes as the nation is undergoing transition of power. If the tariffs persist, they will be one of the earliest diplomatic tests to face the incoming presidency of Alberto Fernández, a leftist politician who will take office within a week.

[qaz123]

I would say that, maybe, the President is thinking..you lay down with dogs, you’re gonna get fleas.

https://www.bloomberg.com/news/articles/2019-10-25/bolsonaro-to-meet-china-s-xi-in-bid-to-balance-ties-with-u-s

Nowhere on the planet do the Chinese let anyone get the better of them, until now and President Trump. Bolsonaro is playing with fire. Shame the President is the only one, of the two of them that sees it. Bolsonaro should be looking at what China is doing to Venezuela.

https://www.cnbc.com/2019/02/07/venezuela-china-and-russia-owed-debts-as-presidential-fight-rages.html

https://www.bloomberg.com/news/articles/2019-08-07/china-comes-to-the-rescue-of-venezuela-s-run-down-oil-refineries ..... yet another Chinese debt trap.

[MortMan]

If the goal is to have protectionist barriers taken down by trading “partners” who do not trade fairly, then across-the-board tariffs would be counter productive.

[montag813]

I've been on FR since 1998. Back then the Free Traitors ruled the GOP, and we all went along unquestionably. We believed all the crap about free markets, and the nonsense about tariffs causing the Great Depression, constantly spouted by "think tanks" that decried any and all tariffs, despite our skyrocketing deficits and job losses.

Now most of us are (correctly) yelling support for Trump's tariffs. How times have changed.

[DannyTN]

There are other goals:

• Restore the protectionist environment and give American companies an advantage in our own consumer market through tariffs that worked well for this country for it's first 180 years.
• Rebuild core industries that we have lost after lowering the tarriffs in the 1960s.
• Eliminate the trade deficit.
• Provide tarriff revenue to reduce the national debt and/or lower individual and corporate income taxes.

I'm also okay with targeted tariffs, in specific cases.