Donald Trump begins to stumble upon contradictions of his own strategy. The President of United States went back to his account on social networks to defend actions he is taking on commercial matters. "Tariffs are best," he said, saying that his tactics are forcing countries to "come and negotiate." But a few hours later White House confirmed that it was going to mobilize emergency aid to farmers suffering from collateral damage.
Trump traveled Tuesday to Kansas City in state of Missouri and Wednesday will go to Iowa. The tycoon would not have reached presidency of United States without support of farmers and ranchers of Midwest. The plan is to mobilize 12 billion dollars in short-term assistance to help m protect mselves from effects of litigation. The price of soybeans, for example, plummeted as a result of China's trade-distorting measures, largest customer.
Treasury Secretary Steven Mnuchin said two weeks ago before Congress that y were looking for ways to help farmers while tariffs are being applied. The measure announced by Department of Agriculture goes to producers of pork, cereal and dairy. To mobilize aid is going to use a program created during Great Depression, designed to protect your income.
It is, refore, most palpable example of how commercial tension obliges administration that it presides Trump to adjust its strategy, in front of criticisms of organizations that represent producers of agricultural sector because commercial strategy puts in Danger your sales abroad. If confrontation is prolonged, sector warns, it will also be very difficult to recover those markets. But Trump is not willing to give in.
Countries that have treated us unfair on trade for years are all coming to Washington to negotiate. This should have taken place many years ago but, as saying goes, better late than never!— Donald J. Trump (@realDonaldTrump) July 24, 2018
"Everything will be all right," president inaugurated, calling again for patience to his bases. Trump insists that countries that took advantage of US so far must "negotiate a fair deal or suffer tariffs." What president did not calculate was respite from China, Canada, Mexico and European Union, which is attacking where Republicans are most politically hurt.
The effect of tariffs begins to be reflected in results of large multinationals. Harley-Davidson motorcycle manufacturer warned by posting ir accounts that commercial litigation will stick a bite to ir profit margin. In his case it strikes him on two sides, by price of steel and aluminum that matters and by rise of tariffs towards exporting countries.
The damage in your accounts is estimated at up to 100 million. To compensate, he announced a month ago that he will have to delocalize part of production of motorcycles outside USA in order to protect his business in Europe. "We are doing everything we can to absorb costs and mitigate effects," executives reiterated in presentation of results, "we never contemplate this situation."
In a similar situation you will find Whirlpool appliances brand. He was first company to applaud Donald Trump's policy of economic nationalism. But tariffs on metals are reducing ir profits and forcing m to raise prices to compensate for increase in cost of raw materials. The complaint choir adds Tool Works or Stanley Black Decker.
Maurice Obsfeld, International Monetary Fund's chief economic adviser, expects United States and its partners to "step back" to prevent a greater escalation of clash. He referred to meeting that this Wednesday will be President Donald Trump with that of European Commission, Jean-Claude Juncker, to try to relaunch trade negotiations.
The IMF points out that re is room for "reinforcing" multilateral system. "The conversations between Trump and Juncker can help improve it," he says. But combination of rhetoric and protectionist measures already leave mark and situation can be aggravated if Republican extends tariffs to automobile sector. Mexico's negotiators will also be in Washington this week.Share in Facebook share on Twitter OtrosCerrarCompartir at LinkedinCompartir on GooglePlusCompartir on Pinterest more information
- Rural America clashes with Trump
- Trump attacks against Harley-Davidson: If y go, y'll pay "more taxes than ever"