Trump to tariff steel and aluminum from Argentina and Brazil

Clay Curtis
December 4, 2019

Linking his trade agenda with his Fed criticism in an early morning tweet, he said the two South American countries "have been presiding over a massive devaluation of their currencies. which is not good for our farmers".

"Effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the U.S. from those countries". Macri lost his re-election bid in October and will leave office on December 10.

Meanwhile, ahead of talks with French President Emmanuel Macron on the sidelines of the North Atlantic Treaty Organisation summit yesterday, Mr Trump offered a glimmer of hope and said it should be possible to rapidly resolve his trade spat with Paris.

Bolsonaro's fidelity to Trump is such that he wanted to appoint his own son Eduardo as ambassador to Washington, which was only reversed after Brazilian senators insisted the 35-year-old lawmaker would not be approved. However, he also expressed hope that Trump would show mercy to Brazil's commodity-based economy.

"This is an unfair relationship".

For its part, Argentina's labor and production ministry said in a statement that it had asked the USA for clarification about the announcement and was looking into possible "joint action" with Brazil in response. "I don't see this as retaliation", Bolsonaro said in a radio interview with Brazil's Radio Itatiaia.

Representatives for the U.S. State Department and the Office of the U.S. Trade Representative did not immediately respond to a request for comment.

Then the United States Trade Representative said it would review hiking tariffs on European Union products and adding new ones, because of what it called "lack of progress" in resolving a dispute over aircraft subsidies. Analysts said the origin of Trump's decision may lie in the domestic political consequences of his China trade war. The company denies that claim.

Federal Reserve to act, "so that countries, of which there are many, no longer take advantage of our strong dollar by further devaluing their currencies".

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Peter Navarro, Trump's trade and manufacturing advisor, said the report was "classic fake news dressed up in academic mumbo jumbo".

Trump has repeatedly urged the USA central bank to lower rates to below zero, arguing that negative rates in Europe and elsewhere give those countries a competitive advantage.

Trump has repeatedly assailed the Fed chairman, Jerome Powell, over his leadership and for not cutting interest rates as much as the Republican president would like.

"Their economy is not comparable with ours; it's many times bigger". But it also signaled that it planned no further interest rate cuts absent clear evidence of a worsening US economic outlook.

Across the country, farm bankruptcies have surged 24% since September 2018, a few months after United States trade disputes with China and other countries led to higher tariffs on key farm goods including soyabeans, cotton and dairy, according to analysis by the American Farm Bureau Federation.

The president's action amount to retaliation against two nations that have become alternative suppliers of soybeans and other agricultural products to China, grabbing market share away from the U.S. Argentina's peso plunged earlier this year on election results putting a left-wing candidate in the presidency.

He also has earmarked almost $30 billion for farmers to help make up for their losses.

The reinstatement of tariffs will boost US steel prices, benefiting domestic producers.

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