WASHINGTON — The Trump administration’s announcement that it will impose tariffs on steel and aluminum imports from Europe, Mexico and Canada may hurt America‘s defense sector and imperil domestic jobs, analysts warn.
The tariffs, which will impose a 25 percent surcharge on imported steel and 10 percent on aluminum, will go into effect Friday, as the administration follows through on the penalties after earlier granting exemptions to buy time for negotiations. U.S. President Donald Trump announced the tariffs in March, citing national security concerns.
Europe and Mexico pledged to retaliate, exacerbating trans-Atlantic and North American trade tensions. The European Commission’s president, Jean-Claude Juncker, said Trump’s decision amounted to trade “protectionism, pure and simple,” adding that Europe would respond with countermeasures.
Mexico said it would penalize U.S. imports including pork bellies, apples, grapes, cheeses and flat steel. Kathleen Wynne, Ontario’s premier, made it clear more retaliation is coming, saying: “Donald Trump is a bully. And the only way to do deal with a bully is to stand up and push back.”
The U.S. action widens a rift with Germany and other close allies, and it threatens to drive up prices for companies and consumers that buy steel and aluminum. The move also heightens uncertainty for businesses and is already alarming investors in global financial markets.
For the rest of this article: https://www.defensenews.com/industry/2018/05/31/us-defense-sector-braces-for-trump-tariff-fallout/