US new tariffs to hit market across Globe | Draws sharp criticism |


The United States of America has decided to impose tariffs on steel and aluminium imports from key allies in Europe and North America. From now onwards they will levy a tax of 25% on steel and 10% on aluminium imported from Mexico, Canada and the EU.
The move has triggered sharp reaction from other countries with strongly worded responses being sent and received from the different governments. It has also forced other countries to retaliate by levying taxes on the imports of American products.
The UK feels deeply disappointed in the unfruitfulness of weeks of negotiations, which had followed US president Donald Trump’s announcement of tariffs on steel and aluminium in March citing national security as the reasons for the decision. Trump believes that the oversupply of steel and aluminium and their cheap imports are harming he us producers and costing us workers their jobs
The US had granted temporary exemptions to the EU, Canada and Mexico amid negotiations over limits. That deadline was due to expire on June 1. It had already been extended by one month
Many Economists and companies in the United States fear that higher metal costs will disrupt supply chains in the country and eventually will be passed on to US households. They have warned that levying the tariffs will lead to job losses in those industries, which rely on the steel and aluminium.
Goldman Sachs in March had estimated that the tariffs would boost the inflation rate by less than half a percentage point.
US Commerce Secretary Mr Ross, however, has dismissed any concerns about higher costs, assuring that the effects will be minimal.
The decision has faced sharp criticism in the US from businesses and lawmakers, including Republicans who have typically supporters of the president.
Calling it a bad day for the world trade, The EU is already considering taking its case to World Trade Organization.