The Trumps administration recently announced that it would impose tariffs on steel and aluminum coming from some of its trade allies. The levies imposition move has angered the trade partners who continue to resist and warn Trump to reconsider his actions. Finance chiefs in various countries that trade with the US have voiced their resentment towards Washington. This, in turn, signifies the possible heated battle at the next week’s G7 meeting in Quebec.
As a result, the six G7 members have communicated to U.S. Treasury Secretary Steven Mnuchin, requesting him to express their unease and dissatisfaction on the levies to President Trump. The imposition of taxes of 10 and 25% on aluminum and steel was made to Mexico, Canada and the European Union. Canadian Finance Minister Bill Morneau referred to the Trump’s administration actions as destructive and non-conducive for the market.
Morneau spoke after a summit at Canadian mountain resort in Whistler, British Columbia.
Unanimous disagreement against the US is unusual. However, when it comes to the tariffs, no country favored America. In reaction to the import taxes, Japanese Finance Minister Taro Aso noted that though discussions have been ongoing between Abe and Trump, Japan will not accept the levies. This summit in British Colombia has been named G6 plus one. This shows great antagonism. In defense of President Trump, Mnuchin articulates the move is objected to re-balancing trade relationships.
After the World War II, countries agreed on trade rules and global economic and trading system. Many of the G7 officials blame the United States for infringing on this agreement, remarks that Mnuchin has declined. In further support for the move, Mnuchin says the trade impact on US financial system has led to tax restructuring.
In reaction to the comments and views after the meeting, Trump on twitter relayed that the US ought to be treated fairly on trade. The metal tariffs enforced on the countries and which are active in all the G7 states is intended at limiting disproportionate manufacture in China. Mexico and Canada have acted in response to the Trump’s administration decision have imposed taxes on some of US exports. The EU, on the other hand, plans to retaliate on US motorcycles, jeans and bourbon.
French Finance Minister Bruno Le Maire on US new tariffs said they have some days to stop the trade wars failure to which it will take counter-measures alongside these levies. If the taxes were not imposed, some officials believe confronting China would be more comfortable. Aso considers China is infringement G7 and World Trade Organization policies which profits it. Sanction on Iran will significantly affect EU market as German Finance Minister Olaf Scholz says. There was no conformity on the agendas conversed in the conference.