Trump has imposed import duties on steel and aluminium trade war in action
D. trump, as expected, the imposed duties on import of steel and aluminum. They will be applied after 15 days. The new rates will not apply to Mexico and Canada, but only if they reach agreement on the new North American free trade agreement, which will satisfy US.
The introduction of duties on the metals, on the one hand, and the delisting of Mexico and Canada, on the other, does not mean some kind of inconsistency. Rather, the contrary. For trump in relations with these two countries is more important than the upgrading of the General agreement on NAFTA. And exemptions on duties are the only instrument of pressure on neighbors – from easing US refuse in the case of reticence on other terms of trade.
Trump at the same time this can show as a sign of “goodwill” from the United States. Not only with our partners in NAFTA, but also with other countries. The course is really graceful. Duties were not, then they are imposed by the US unilaterally. But if someone wants to avoid them, now I invite you to dialogue about the conditions and possible retaliatory steps to concessions to the Americans.
In General, it is only the appearance that the reality was softer than expectations. Remains a potential danger for the global economy the slowdown in world GDP growth from 3.6% to 2.8% due to “trade wars”, according to experts. Because now you can wait for the response from Ezili China to limit imports of American goods.
For Russia, the negativity can manifest itself in the following. First, direct losses from the increase in duty on steel and aluminium, which Russia supplies to the United States. Second, the fact that the direction of the world U.S. exports largely go to other countries, that will intensify in these markets competition from Russian metals and reduce their prices. Finally, in the third, increasing the “trade wars” will reduce the dynamics of the world economy. This will weaken demand for raw materials in General and, for example, energy, which is clearly negative for Russia. In addition, this position and increase of risks will adversely affect the market quotations of Russian assets has traditionally been risky.