The U.S. has a trade deficit with every key nation we trade with and our steel and aluminum industries are about to collapse. In an effort to save the two vital industries and stop the loss of jobs to foreign nations, the President began slapping tariffs on foreign goods as the foreign nations have done to us.
HITTING RED STATES, TRUMP’S BASE
They have retaliated. The EU has decided to attempt to unseat the President by slapping tariffs on goods coming from the Red States. Tariffs were placed on items such as whiskey, tobacco, Harley Davidson motorcycles and peanut butter.
They hope to erode Trump’s base of support and sway the elections. It will allow them to gain more and more advantages in trade.
With good friends like this, who needs enemies?
The EU’s tariffs target products primarily made in Republican states, hoping to threaten Mr. Trump’s party in the run-up to the November midterm elections. They come after a tense showdown at the G7 summit, where Mr. Trump refused to sign on to a joint communique with leaders of the world’s most advanced economies.
One of the ringleaders is Communist European Commission president Jean-Claude Juncker who said the EU would “do what we have to do to rebalance and safeguard” against the US tariffs.
“It goes against all logic and history,” he said of the US taxes. “Our response must be clear but measured.”
Juncker is the one who chose to do business with Iran over the U.S.
The EU, Mexico, and Canada are working jointly to levy tariffs on the U.S. because individually, they wouldn’t succeed.
The EU filed a complaint with the World Trade Organization, calling U.S. tariffs “protectionist” and “illegal”.
They will not work with the U.S. president as the former president Obama urged. In fact, days before the G7, Jim Comey was in Canada telling the member nations to never trust Trump.
According to a CNN poll out Thursday, if that is to be trusted, most Americans prefer good relationships with allies over imposing tariffs. The Independent cited the poll but didn’t link to it, explain how the question was worded, or give any further information.
THE COLLAPSE OF US STEEL AND ALUMINUM
The tariffs began with the U.S. imposing tariffs on steel and aluminum because those two key industries are collapsing and it poses a national security threat. The U.S. is the largest importer of steel, importing about four times as much as it exports, the White House reports.
The U.S. imported five times as much primary aluminum as it produced in 2016.
“It’s a process called dumping. And they dumped more than any time, on any nation, anywhere in the world, and it drove our plants out and our businesses out,” Trump said.
Fox News reported that the administration’s move to impose tariffs came after a nine-month investigation, led by Ross, and interagency meetings from April 2017 through January 2018, which found that the current level of aluminum and steel imports to the U.S. had the “potential to threaten our national security.”
Trump said the investigation documented a “growing crisis” in U.S. steel and aluminum industries, which he said have been “ravaged.”
“The steel industry has been ravaged by aggressive foreign trade practices, an assault on our country… It’s been an assault, they know better than anybody,” Trump said. “And I’ve been talking about this for a long time, longer than my political career.”
The president blasted politicians, noting they “never did anything about it.”
“Our factories were left to rot and to rust all over the place. Thriving communities turned into ghost towns. Not any longer,” Trump said. “The workers who poured their souls into building this great nation were betrayed, but that betrayal is over.”
The President is currently working on improving NAFTA and has temporarily exempted Mexico and Canada. However, the elections in Mexico don’t bode well for the U.S. The leading candidate is an anti-American Communist who wants to give amnesty to cartels.
The trade deficits have grown worse each year and our partners do impose tariffs where we haven’t.
No one wants a trade war but these trade deficits are unsustainable.
The following examples are via the U.S. Census Bureau: