Trump administration wrong on tariffs and trade wars, experts say
Commerce Secretary Wilbur Ross downplayed the potential fallout of a trade war Friday as economic experts warned that President Donald Trump's plan to impose steep tariffs on imported steel and aluminum could have dire consequences for American workers.
"In any war, there may be a few casualties, and that just comes with the nature of the beast," Ross told CNBC Friday morning.
He also dismissed a jittery international market as “overreaction” and “hysteria," saying the plan to impose a 25 percent tariff on imported steel was "no big deal." The import tariffs would mean American companies that chose to purchase their steel or aluminum from abroad would have to pay an additional tax to the U.S. government, effectively increasing the price and making domestic purchases more attractive.
Wall Street, contemplating the possible far-reaching effects of a global trade war, saw markets tumble Thursday and Friday. Economists were quick to point out that the inevitable “casualties” of the tariffs and potential trade war that ensues will be greater in number than Ross suggests.
“The losers are plentiful, and there are actually way more losers than winners. The issue is that we’re not just talking about finished steel, but we’re talking about entire industries that use semi-finished steel to add value,” said Monica de Bolle, senior fellow at the Peterson Institute for International Economics.
"In any war, there may be a few casualties, and that just comes with the nature of the beast," Ross told CNBC Friday morning.
He also dismissed a jittery international market as “overreaction” and “hysteria," saying the plan to impose a 25 percent tariff on imported steel was "no big deal." The import tariffs would mean American companies that chose to purchase their steel or aluminum from abroad would have to pay an additional tax to the U.S. government, effectively increasing the price and making domestic purchases more attractive.
Wall Street, contemplating the possible far-reaching effects of a global trade war, saw markets tumble Thursday and Friday. Economists were quick to point out that the inevitable “casualties” of the tariffs and potential trade war that ensues will be greater in number than Ross suggests.
“The losers are plentiful, and there are actually way more losers than winners. The issue is that we’re not just talking about finished steel, but we’re talking about entire industries that use semi-finished steel to add value,” said Monica de Bolle, senior fellow at the Peterson Institute for International Economics.
Source: nbcnews
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