Aggressive Trade Measures of Trump Could Lead Trade War?
New protectionist trade measures by US President Donald Trump had a negative impact on global stock markets. The announcement of new taxes on imports of steel and aluminum came at a time when investor sentiment was fragile, and markets were shocked by the prospect of more aggressive tightening of monetary policy.
Trump is facing anger from manufacturers and trade partners in China and Europe after announcing tariffs of 25% on imported steel and 10% on aluminum for “a long period of time.” The formal order is expected to be signed next week. The tariffs on imports of steel and aluminum in the US, which Trump announced on Thursday, are definitely the beginning of more aggressive trade measures by the Trump’s administration to protect the US industry. Analysts suggest that China could retaliate by imposing punishing measures of its own on major US exports such as soybeans or airplanes.