USA continue to fight for its domestic market

  • And
  • +A

USA continue to fight for its domestic market and own production for victory, they are willing to worsen relations with all, though not in a moment.
Hasty decisions trump the adoption of radical changes in economic and political spheres of the country due to its unstable position as President. That decision was approved, we had to move fast, otherwise it will not work at all. Unfortunately, this approach leads to serious losses among the U.S. businessmen, so after the introduction of new laws begin progress in the direction of easing the position of the state.
One of the most acclaimed recent days – the introduction of duties on steel and aluminium (hire and products), which in the next three years (at best) postpone ambitious plans trump in the development of production in the country. Progress on removing trade barriers with Canada and Mexico was announced because of the strong pressure lobby firms from these countries. Canada and Mexico are built in the US economy too severely and the loss of up to 40 billion dollars a year will appear in the balance sheets of all participants.
It’s funny, but even the construction of the wall on the border with Mexico requires steel, which the US buy from her (more than 2 million tons). Upgrading the infrastructure and development of oil and gas companies, ambitious military and Arctic program would slow down to 10-15% and will become more expensive by 10-15%, because the appearance fees for direct supply does not mean that the purchase of the steel will to be done to further the same pattern.
Thus, States create the opportunity for localization and co-production or sale of products on its territory, but right now they have deployed the new active actions that require immediate implementation and the voluntary restriction of one of the strategic products creates problems, obviously once this year.
This approach seems more as an attempt by trump to limit the “hawks” and their attempts to capture the global economy available to understand measures. However, all possible relief show one of US is ready to negotiate only on his own script, the output of Pacific partnership returns in a new guise, and Washington there are still many industries which can “unexpectedly” need protectionist measures.
Alexander Grigorenko,
Asset Manager
IR Global Capital