March 03, 2018•Update: March 04, 2018
By Ovunc Kutlu and Barry Ellsworth
NEW YORK
The U.S. President Donald Trump's plan to impose tariffs of 25 percent on steel and 10 percent on aluminum continued Friday to cause a backlash among American businesses, organizations, and the U.S.' trade allies.
Canadian Prime Minister Justin Trudeau said he has spoken directly to Trump to indicate his displeasure with the tariffs, Canadian media reported.
At a news conference to discuss the federal budget introduced Thursday, questions were targeted the tariffs.
“We regard the implication of any new tariffs as absolutely unacceptable. I have spoken a number of times directly with the president on this issue,” Trudeau said, “highlighting and reminding him of the close security co-operation we have and highlighting this is not something we want to see.”
News of the new tariffs shook the Canadian industry. America buys 16 percent of its steel annually from Canada.
As well, Canada ranks as the number one buyer of American steel, which, according to the Canadian Steel Producers Association, evenly balances the total trade to CAN $12 billion yearly.
“Disruptions to this integrated market would be significant and serious,” Trudeau said.
Trump argued earlier Friday that any trade war with a U.S. ally would not cause much of an issue.
"When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win," he wrote on Twitter.
"Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!," he added.
The U.S.' trade deficit was $566 billion last year, reaching its highest level since 2008, according to the Department of Commerce, although Trump said decreasing the trade deficit is one of his administration's top priorities.
"We must protect our country and our workers," Trump later wrote on Twitter, adding "Our steel industry is in bad shape. IF YOU DON’T HAVE STEEL, YOU DON’T HAVE A COUNTRY!"
Trump's plan to impose tariffs on steel and aluminum has been highly criticized by business organizations.
"Make no mistake, this is a tax on American families ... there is nothing this country will gain from such a one-sided policy," National Retail Federation President and CEO Matthew Shay said in a statement Thursday.
"When costs of raw materials like steel and aluminum are artificially driven up, all Americans ultimately foot the bill in the form of higher prices for everything from canned goods to electronics and automobiles," he added.
Matt Blunt, president of the American Automotive Policy Council, said in a statement that Trump's plan would put the U.S. automotive industry, which supports some seven million American jobs, at a competitive disadvantage.
“With one stroke of the pen, much of the promised benefit of tax reform and other Administration initiatives aimed at reviving manufacturing and protecting national security could be undercut," John Bozzella, president of the Association of Global Automakers, said in a statement.
Major American steel manufacturers, on the other hand, supported Trump's plan.
U.S. Steel CEO David Burritt said Thursday that the plan is "vital to the interests of the U.S."
Nucor CEO John Ferriola said the steel industry counts on the Trump government for creating "a level playing field" for competition.
U.S. Steel and Nucor saw their shares gain 5.7 percent and 3.3 percent on Thursday after Trump's announcement, but U.S. Steel stock's price ended Friday with 1.3 percent loss.
