Has the Trade War Begun?

What’s the story?

• The European Union, Mexico, and Canada are striking back against the Trump administration’s decision to impose heavy tariffs on steel and aluminum.
• Canadian Prime Minister Justin Trudeau announced his country will impose retaliatory tariffs on $12.8 billion worth of U.S. goods.
• Mexico plans to join the EU in starting a World Trade Organization dispute settlement over the U.S. tariffs.

What are the countries threatening?

• Mexico said it would hit back against U.S. tariffs with “equivalent measures,” targeting pork legs, apples, grapes, cheeses, and steel-products from the American heartland.

“It sends a clear message that this kind of thing does not benefit anybody,” Mexican Economy Minister Ildefonso Guajardo said. “Because, in the end, the effect will fall on voters and citizens that live in districts where the people have a voice and vote in the (U.S.) Congress.”

• Canadian Foreign Minister Chrystia Freeland said her country plans to slap dollar-for-dollar tariffs on U.S. products including whiskey, orange juice, steel, aluminum, shaving cream, ketchup, and motorboats.
• The EU plans to impose 25-percent tariffs on roughly 200 American products, including orange juice, denim, peanut butter, motorcycles, bourbon, and cigarettes.
• According to EU officials, the threatened tariffs are worth roughly $3.3 billion annually.

What is the United Steelworkers Union saying?

• The USW, which represents 850,000 workers in the U.S. and Canada, called for the Trump administration to exempt our northern neighbors from the tariffs:

"This decision is unacceptable and calls into serious question the design and direction of the administration’s trade policy. Section 232 relief is founded on national security interests and U.S. law. Our history shows that there is no stronger ally and partner on national security than Canada.”

 What do you think?

Is this the beginning of a trade war? If so, which side of the fight are you on? Do you support the tariffs? Or do you agree with Sen. Orrin Hatch (R-UT) that they’re “a tax hike the American people don't need and can't afford”? Hit Take Action and tell your reps, then share your thoughts below.

—Josh Herman

Related Reading

• What Can Congress Do About the Tariffs?
• U.S. Slaps Metal Tariffs on Mexico, Canada, and E.U.

(Photo Credit: NiroDesign / iStock)