Steel standoff: EU, Japan press U.S. for tariff exemption

The US is always going to have a trade in-balance as it consumes far too much in proportion to the rest of the world. Trump is delusional if he thinks he can get it to a surplus instead through measures like this.

Trumps simple and high uncomplicated logic is as follows.

China - $636 billion traded with a $375 billion deficit.

Canada - $582 billion traded with an $18 billion deficit.

Mexico - $557 billion traded with a $71 billion deficit.

Japan - $204 billion traded with a $69 billion deficit.

Germany - $171 billion traded with a $65 billion deficit.

I suppose if Mexico is exempted, you would also exempt Japan and Germany, but clearly not China.

The U.S runs a surplus with Australia, one of very few, so we should be auto-exempted ;)

This is a good, summarised article. Im hoping its accurate (probably not) - https://www.thebalance.com/trade-deficit-by-county-3306264

hurting allies like the EU and Japan more than China, their main target.

And thats what makes this stupid. He should be using U.S allies to help offset the losses to the U.S economy of a trade war with China.

The real issue is that the US government is using a bogus reason ("national security") to try to "negotiate“ more favorable conditions by “generously“ offering exemption to the tariffs.

In legal terms that tantamounts to coercion or blackmailing.

Unbelievable, that a US government is doing this to long-time trusted allies.

Basically he just wants to put sanctions on China, but China hasn't done anything wrong

Basically he just wants to put sanctions on China, but China hasn't done anything wrong

Is it April Fools Day already?

As much as I hate parts of the U.S government and the main proverb that "Money Talks" over there.

I, as a European Japanese born feel a Lot safer with the U.S as the head dog than China.

Putting tariffs on Europe and Japan is no good. Europe, at least, has leaned more toward China in recent years, Japan hasn't (for obvious reasons). And if Europe gets too close to China it'll pose a severe threat to the U.S considering Europe is a force to be reckoned with even if its peaceful with its 550 million population and 20 trillion dollars+ economy.

Even if Money Talks is a big thing in the U.S and they generally like to play world police. They are European brethren, at least, 55-65% of the U.S population have European roots and they value basic democracy like, idk, freedom of speech. Whilst in China, winnie the pooh and the letter N has been banned for being associated with Xi Jinping.

I love the Chinese, I do. But their Communist Party is no good for China in the Long term, especially if they are to replace the U.S as a world superpower. It'll pose no good for the rest of the world the day China is embolden enough to push its agenda on the rest of us. Death of Freedom of Speech and Net Neutrality being one of my personal main concerns.

I wish the U.S would go hard on China, no matter what. The U.S military dwarfs China in every aspect, and that in itself, if it turns critical, is enough to make China back down and they should use that card while they Still can.

As things are right now, I fear a world lead by China. If the government changes in China, I may not, but for the time being, gulp I want USA to be the big dog.

if its for national security then you also have to exempt Japan & EU, after-all they are US allies and hold a large number of US bases in their territories. With all these countries exempt only around 15% of steel imports into the US will have tariffs. Just proves that these tariffs are just a political tool to kowtow to his base and keep their support

No wonder Australia is such a stupid nation because they have Matt Hartwell.  well if its such a stupid nation then why does it have a higher GDP per capita, about 20% higher, compared to Japan, the average Australian is wealthier than the average Japanese.

Because Australia has China as major partner, thats why. When china economy collapses very soon, Australia GDP will collapse, to similar too 3rd world nations. Japan will keep on growing and power ahead to number two. If Australia gets metal tariff exemption, Japan should too. It would not be fair, Japan is USAs number one friend in Asia.

if you lower the walls and tariffs on US imports maybe we will consider it

I’d say Japan will likely be given an exemption on these incredibly silly tariffs

Donald Trump,

Forget the tariffis! You must studdy the cunning tactics of our so called trading partners that have requirements with hidden trade barriers that restrict and inhibit American products from coming into their countries.

For steel coming into to the U S, set up tolerances in grading the contents of the steel. There must be labratory testing, with reports that could take months to clear prior to release.

This is an example as to how our so called trading partners would do it.

These countries also have low tolerances for many American products. Of many, one example is processed food products, tolerances that inhibit and greatly drive up the cost. These hidden trade barriers are more detrimental to America's exports than the tariffis themselves.

So again Donald, study the cunning trade barrier tactics of our so called trading partners. Do as they do in so called free trade- this way you do not need to increase tariffis- you will accomplish what you are seeking as they have done in the past and are now doing.

Because Australia has China as major partner, thats why. When china economy collapses very soon, Australia GDP will collapse, to similar too 3rd world nations

I cant see China's economy collapsing at any point. I can see a big correction in terms of debt levels, but they will push through it.

But lets assume it does happen, most of the impact would be on one Australian state. The rest of the country would keep on moving. Why?

You have to keep in mind though that the majority of what Australia exports to China is minerals, specifically iron ore, by a VERY large margin, approximately 50% of all exports.

Here is a nice graph - https://atlas.media.mit.edu/en/visualize/tree_map/hs92/import/chn/aus/show/2016/

This is a nice link, quite recent, about the industry in Western Australia - http://www.jtsi.wa.gov.au/docs/default-source/default-document-library/wa-iron-ore-profile-0617.pdf?sfvrsn=8

Several things to note:

Overwhelming iron ore is based in W.A. 53000 people employed. Any downturn in that industry will have marginal impacts in NSW, VIC, QLD - the most populous states, but impact W.A heavily. These companies are majority foreign owned, not Australian. Taxes, royalties etc - BHP - 4.7 billion, Fortescue 2 billion approx, Rio approx 3 billion. Total taxes collected by all Australian governments was around 440 billion in 2013-2014. Probably closer to 500 billion now. So your talking 2% of taxes for these companies.

Not only that, but its not clear in that W.A report whether India will be able to supply all their needs domestically. From the article - "India accounted for 7 per cent (143 million tonnes) of global iron ore production in 2015, taking over from China as the third largest producer of iron ore. India exported 3 per cent of its iron ore production in 2015."

3% exports suggests there aint much room to move and they may need to import more iron ore if India maintains 7 - 8% growth.

here is what dealing with Japan is like:

US - we are going to tax imports from Japan unless you lower the barriers to US imports

Japan - OK you can send to Japan your goods, as long as it is not cars, fruit, vegetables, meat, milk, computers, phones, textiles, paper, metal, drinks or plastic. Anything else is ok. Deal?