New US duties by Trump

He said that his actions were necessary and geared towards ensuring that decimation of entire communities was stopped and ensure that there is a fair process as the administration takes their time to negotiate exemptions with allies. This meant that the only countries which would be exempted would be Canada and Mexico. Trump insisted that steel is essential for the country claiming that there would be no country without steel (Ainsworth, 2016, p. It was among Trump’s top agendas and on top of the manifesto during campaigns when he promised that he was very dedicated to ensuring that he saves the United States’ steel and aluminum jobs. He claimed that American citizens had been rendered jobless due to cheap foreign imports.

The speaker of the House has come out to oppose the decision saying that he is afraid of the unintended consequences. He suggested that there are other better ways to solve the unquestionably bad trade practices by some nations such as China. It is true that Trump had promised to protect the steelworkers’ jobs but he did not follow the correct strategy which had been proposed by Gary Cohn and other stakeholders in the affected industries. They argued that effects which will be as a result of these tariffs will automatically outweigh the benefits and therefore they were not the best option. This decision led to the resignation of Cohn. The tariffs which have been set by Donald Trump are targeting more than one thousand three hundred goods which are coming from China.

The Chinese government has responded by sending threats to the white house saying that they will also impose a 25 percent tariffs on the one hundred and six goods which enter their country from the United States of America. These goods include fourteen categories including soybeans, chemical products, and cars. The war between the two countries will mean a great blow to the global economy since the two countries trade so much. The tax on the imported goods would cover shipments from the United States which adds up to fifty billion dollars. The United States had already imposed tariffs on products such as solar panels and washing machines which are particularly manufactured and supplied by China and South Korean businesses. This was a clear indication to China that the United States was specifically targeting them in order to affect their economy because they are the biggest threat to the United States’ economy("China Could Target U.

S. Firms if Trump Levies Tariffs, Group Warns," 2017). The retaliation from China will mainly focus on the agricultural and aircraft industries which are the main industries that the United States’ economy greatly depends on. However, Europe, on the other hand, will benefit economically from the economic battle between the United States and China ("China Could Target U. S. Firms if Trump Levies Tariffs, Group Warns," 2017). This is because those companies or sectors which compete with the affected sectors in this battle will benefit since they will automatically be the ones supplying the products. A good example of a company which will benefit greatly is the Airbus jetliner which competes against Boing in supplying aircraft to the Chinese carriers. Firms if Trump Levies Tariffs, Group Warns.