Trump Says ‘Trade Wars Are Good,’ ‘Easy to Win’; Republicans, Market Pushes Back Trump Says ‘Trade Wars Are Good,’ ‘Easy to Win’; Republicans, Market Pushes Back – NTK Network

Trump Says ‘Trade Wars Are Good,’ ‘Easy to Win’; Republicans, Market Pushes Back

Following his announcement of new tariffs on steel and aluminum imports, President Trump tweeted that a trade war would be good for the U.S. So far, Republican leaders and the markets have suggested otherwise.

By NTK Staff | 03.02.2018 @9:00am
Trump Says ‘Trade Wars Are Good,’ ‘Easy to Win’; Republicans, Market Pushes Back

Following his announcement Thursday that he will levy 25-percent tariffs on steel imports and 10-percent tariffs on aluminum imports, President Trump tweeted on Friday morning that “trade wars are good” for the country.

However, if the early reactions to Trump’s move are any indication, a trade war – with China or anyone else – may not be good for the country, or at least for the U.S. economy.

Speaker Paul Ryan, a conservative and key ally of Trump, “is hoping the president will consider the unintended consequences of this idea and look at other approaches before moving forward,” according to his spokesman.

The markets, meanwhile, reacted poorly to the news, with major indexes dropping. U.S. steel companies went up, in part because they may be able to raise their prices, according to Axios, while automakers that rely in part on imported steel went down.

Trump followed up with a tweet later Friday morning, specifically addressing his steel tariffs:

The U.S. does have steel, though. It’s just that a lot of it is imported. NTK Network noted yesterday that the U.S. imported about one-third of its demand for steel through most of 2017, and from the following top sources:

  • Canada: 16 percent of imports
  • Brazil: 13 percent
  • South Korea: 10 percent
  • Mexico: 9 percent
  • Russia: 9 percent

Whether Trump will follow through on his trade war, following the backlash from the markets and his own party, is a question few, if anyone, knows the answer to.

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