U.S. President Donald Trump took another shot at Canada's trade practices Saturday, alleging that Canadian leaders have taken advantage of bumbling American politicians "for decades". Ambareesh Baliga, an independent market expert, feels an all-out trade war will prove detrimental to global markets.
The ACC has asked Trump to reconsider the tariffs because they will drive up the cost of building chemical plants in the U.S.
There is a trade deficit with the United States, meaning more American products and services are bought down under than sent the other way.
The announcement of duties of 25 percent on imported steel and 10 percent on aluminum has stung the European Union and other major partners, coming as a surprise to allied countries and even, reportedly, to some close presidential advisers.
Politically, it is aimed at the blue-collar industrial swing states that eschewed Hillary Clinton and went to Trump to give him the crucial electoral college votes to get to the White House. "The US trade protection measures will lead to a temporary disruption in a few regional markets as new trade channels open up to cater to supplies left behind from reduced US exports", says Abhishek Poddar, Analyst, Kotak Securities.
The uncertainty has already spooked the stock market and spurred protests from industries as diverse as auto parts manufacturers and soybean farmers which until now had cheered the president's deregulatory agenda.
"We have to protect our steel and aluminum industries while at the same time, showing great flexibility with people who are really friends of ours", the USA president said during a White House press conference.
The negotiations between the European Union and U.S. are to win an exception for Europe from the tariffs, with Brussels seeking clarity on how to achieve that. "Indeed, new shale-gas-inspired projects along the U.S. Gulf Coast will render U.S. commodity chemical producers increasingly reliant upon export markets over the next three to five years".
"We have noticed that some foreign-funded businesses have complained about China's investment environment", Zhong said.
It is not too much to say that no other country would suffer more from US tariffs than South Korea, which is too dependent on exports for economic growth.
Tariffs on steel and aluminum stand to have a major impact on some of the United States' most important allies, including the United Kingdom. Trump tweeted that he spoke with Japanese Prime Minister Shinzo Abe, saying they are "discussing opening up Japan to much better trade with the U.S. now have a massive $100 Billion Trade Deficit".
Brussels has pushed back the hardest against Washington's shock measures, loudly announcing a list of U.S. products - including peanuts and motorcycles - it could hit with countermeasures.
In another development, Mr Trump tweeted on Monday that Commerce Secretary Wilbur Ross would be speaking to European Union representatives about "eliminating the large tariffs and barriers they use against the USA".
From an economic viewpoint, however, the decision has been widely condemned, especially by Republicans, who traditionally support free trade and oppose "industrial policy": the notion that government should pick winners and losers in the marketplace.