Even better than anticipated, I told him…After threatening US trading partners with new tariffs, President Donald Trump took aim at the World Trade Organization.They have been treating us very badly for many, many years and that’s why we were at a big disadvantage with the WTO,and we’re not planning anything now but if they don’t treat us properly, we will be doing something.
Trump spoke after news reports that the White House has drafted a bill that would allow the president to set tariff rates outside the jurisdiction of the WTO.This would in effect abandon US commitments to the international trade body.
Meanwhile, other countries are fighting back.Canada has imposed tariffs on 12.6 billion dollars of US goods in retaliation for levies on steel and aluminum.China is set to slap retaliatory tariffs of 34 billion dollars on American goods, including soybeans.The European Union could start measures to curb steel imports by mid-July.It was clear to the, the American administration all along that if they were to impose tariffs on aluminum and steel, we would consider them as illegal and not in compliance with WTO, and there would be consequences.
The EU also threatened to implement tariffs on 290 billion dollars in American goods if trump follows through on his plans to crack down on foreign cars.While the president insists his tactics will secure better trade deals for Americans, many analysts are concerned.We’re going in the wrong direction, we are increasing the costs to our economy.We’re threatening the rules-based multilateral trading system that has been the source of U.S. prosperity in the post-war era and even more importantly the source of US influence in the world economy.
Economists believe a full blown trade war would hurt global economic growth because of reduced trade volume supply chain disruptions and a loss of investor confidence.Despite the warnings, President Trump does not seem concerned this will happen, citing the strength and resilience of the US economy.
Patsy Widakuswara，VOA news at the White House