In just six hours on Thursday, President TrumpDonald John TrumpDeWine tested negative for second coronavirus Some GOP lawmakers expressed concern about Trump’s executive order Beirut’s consequences set tests for US aid against allies frustrating MORE It has taken two major commercial actions: reimposing aluminum tariffs on Canada and placing restrictions on China̵7;s use of two major applications.
This move surprised and worried trade followers.
For much of this year, Trump has largely eased the escalating trade wars that have identified much of his presidency in 2018 and 2019. Experts are now concerned that the actions provoke His aggression and his seeming surprise about trade over the danger of elections are crumbling an economy that is reeling from a pandemic.
Gary Hufbauer, a trade expert at the Peterson Institute for International Economics in Washington, said: “The recent flare-ups reflect Trump’s re-election team’s decision that they need some very clear messages. for a chance to win.
“This will be a movie that continues and escalates until the election, and probably January 20,” he added.
Trump, who led a wave of trade aversion to the White House in 2016, appears to have gone the corner over the past year, from completing the US Canada Mexico Agreement to signing the “Phase One” deal. with China in January.
But with polls showing he is trailing behind the hypothetical Democratic candidate joe BidenJoe BidenBiden says Trump’s executive order is ‘a reckless war on Social Security’ Trump exchanged challenges with top GOP sponsor Adelson: Blumenthal report calls for decryption of documents stating details details Russia’s threat to the US election MORE on the national level and in key battlefield nations, Trump has once again increased the trade heat.
Speaking at a Whirlpool factory in Ohio on Thursday, he announced the relocation aluminum tax on Canada.
“A few months ago, my administration agreed to lift those tariffs in exchange for a promise from the Canadian government that its aluminum industry would not flood our country’s exports and kill everything. Our aluminum jobs, that’s exactly what they did, ”Trump said.
Hufbauer describes Trump’s move as in political favor rather than as providing economic benefits to the United States
“The aluminum tax has no support from the American business community, including aluminum producers,” Hufbauer said.
Canada quickly responded to Trump’s statement, imposing tariffs on US aluminum products.
More ominously, Trump pointed out that something bigger is being done.
“I will sign something very important next week, maybe ,. And it will have a huge impact on fairness and trade, ”he said Thursday.
On the same day, he announced executive orders that would essentially ban Chinese-based apps TikTok and WeChat in late September, part of a series of escalations with China including the Foreign Minister. Mike PompeoMichael (Mike) Richard Pompeo The aftermath of the war that sets the test for US aid to allies is disappointing Campaigning groups against Trump choose to be ambassadors in Germany US pledges to aid disaster in millions dollars for Lebanese ADD formally rejects Beijing’s claims to the South China Sea.
Peter Cecchini, founder of AlphaOmega Advisors, referring to Pompeo, said: “That action is completely free from a trade war divorce.
Cecchini noted that the South China Sea is a major shipping route.
Trump’s repeated targeting of Canada and China has sparked some criticism on Capitol Hill, especially because Canada is seen as a trusted ally and neighbor.
“President Trump is right to continue to confront China for its unfair trade practices,” Senate Finance Committee Chairman Chuck GrassleyCharles (Chuck) Ernest GrassleyMcConnell embarked on a coronavirus bailout GOP presidents hit back on accusations they were spreading false information with the Biden poll on money: The unemployment debate sparked the split. by GOP | Pandemic Disclosure of Unemployment Insurance Program Flaws | Surveys show that nearly one third of the employees who are hired MORE are laid off MORE (R-Iowa) said. “The government should also work with Canada to focus on ending China’s commercial abuses.”
Home Way and Vehicle Committee Chairman Richard NealRichard Edmund NealBiden says Trump’s executive order is ‘a reckless fight on Social Security’ Conservatives urge Trump to take unilateral action to suspend Treasury payroll tax collection to conduct review policy on tax exemptions for universities after Trump tweeted MORE (D-Mass.) More important.
“The president has continuously changed American workers and industry with his messy and semi-hearted policies.” This is just another example, “he said.
Tori Smith, a trade expert at the Conservative Heritage Foundation, said new trade barriers will only weaken the economic recovery.
“It is clear that the administration is not really prioritizing a pro-growth commercial strategy either.
What Trump does next has trade and market followers, competition.
One potential move includes canceling the Phase One deal completely and raising tariffs on China. When the coronavirus epidemic broke out, Trump said repeatedly that he was “torn” about whether to keep the deal alive.
Another possible way is to use the unprecedented International Emergency Economic Powers Act (IEEPA) to impose tariffs under the guise of emergency. Last year, Trump threatened to use those powers against Mexico over illegal immigration but later turned it down.
The IEEPA forms the basis for Trump’s executive orders on TikTok and WeChat.
A significant escalation in any trade dispute could put the market in trouble and undermine troubled businesses less than three months before the election.
But Cecchini said that the market is more concerned with the immediate problems, and the greater damage to consumers and the economy is likely to decline.
“Right now people are being blinded by other things, the recovery of the pandemic and the financial response to it,” he said.
“So though over time that will matter – it will be the biggest risk to the market – right now people are focusing on other things.”