President
Trump is defending his plans to levy billions of tariffs on the
nation's closest trading partners even as allies retaliate
one-by-one.
Trump and his top administration officials remain steadfast on his protectionist trade policies, arguing that growing trade deficits prove the the United States has been losing on the global stage for years.
The
United States has levied hefty steel and aluminum tariffs for
national security reasons on all but a handful of countries, hit
China with duties over the alleged theft of intellectual property and
is contemplating another round of taxes on imported cars.
The
tariffs have rocked the relationships with close allies such as
Canada, Mexico and the European Union, all of which have retaliated,
pushing the world's top economies to the brink of a global trade war.
On
Monday, Trump said during a meeting at the White House with Dutch
Prime Minister Mark Rutte that if a trade deal can be worked out with
the European "it'll be positive, and if we don't, it'll be
positive also."
Rutte's
response was curt: "No. It's not positive. We have to work
something out."
Trump
said that the U.S. will continue meeting with EU officials as they
seek a deal moving forward.
On
Sunday, however, Trump had said that U.S. allies such as the EU are
"as bad as China" on trade adding that "it's terrible
what they do to us."
The
EU recently imposed $3.2 billion in tariffs on iconic American goods
such as bourbon, jeans and Harley-Davidson motorcycles in response to
the steel and aluminum tariffs.
Trump
says he is using Section 232 of a trade law that he argues is needed
to protect national security.
Allies
argue though that they aren't national security threats and Trump's
move isn't justified.
The
EU is planning another possible batch of tariffs on $3.8 billion
worth of goods.
Last
week, Trump said the tariffs have been "incredible" and are
"doing great."
He
has said that his tough policies on trade will force China and U.S.
allies like the EU, Mexico and Canada to the negotiating table to
change their policies.
"Every
country is calling every day, saying, 'Let's make a deal, let's make
a deal," Trump said on Sunday.
"It's
going to all work out," he said.
U.S.
allies have not hesitated to meet Trump's tariffs with hefty
reciprocal duties of their own, most coming into force over the
course of the past month.
On
Sunday, Canada slapped tariffs on $12.6 billion of U.S. goods over
the steep steel and aluminum tariffs.
China
intends to hit $45 billion in U.S. exports after Trump said he would
levy tariffs on $50 billion in Chinese goods. The first round of 25
percent tariffs on $29.6 billion of U.S. exports is expected to start
on Friday. Beijing will implement the remaining $15.4 billion at a
later time, after gauging U.S. reaction.
Trump
has since countered with another round of tit-for-tat tariffs on $200
billion in Chinese goods.
The
U.S. Chamber of Commerce on Monday released a new state-by-state
analysis of the effects of the retaliatory tariffs from China, the
EU, Mexico and Canada.
The
analysis shows how much of each state's exports are threatened by the
tariffs, the number of job losses and what consumers stand to lose in
a trade war.
"Tariffs
are beginning to take a toll on American businesses, workers, farmers
and consumers as overseas markets close to American-made products and
prices increase here at home," said Chamber President and CEO
Thomas Donohue.
"Tariffs
that beget tariffs that beget more tariffs only lead to a trade war
that will cost American jobs and economic growth," Donhoue said.
As
of this week, approximately $75 billion worth of U.S. exports will be
subject to retaliatory tariffs.
But
while some trade experts have expressed concerns about how the
tariffs may lead to job losses or hurt the economy, Trump and his
officials have brushed off those worries.
Commerce
Secretary Wilbur Ross touted the strength of the economy as one
reason why he thinks the tariffs won't cause much harm to growth.
"So
I think all these claims about the sky is falling are at best
premature and probably quite inaccurate," Ross said.
Another
piece of the trade puzzle is whether the U.S., Mexico and Canada can
reach an updated deal on the North American Free Trade Agreement
(NAFTA).
On
Monday, Trump spoke to Mexican President-elect Andrés Manuel López
Obrador, saying later he touched on those topics.
"We
had a lot of good conversation, I think the relationship will be a
very good one, we'll see what happens," Trump said.
Formal
trade talks on NAFTA have stalled after months of work. Trade
watchers expect that negotiations could start up again with the
Mexico election over.
In
early June, Mexico imposed tariffs on $3 billion on U.S. exports,
including pork, apples, potatoes, bourbon and cheese over the metals
tariffs.
The
White House also is considering a 25 percent tariff on foreign cars,
which could hit $350 billion of imports.
Trump
has launched a Section 232 investigation into whether those auto
imports threaten national security started in May and a report could
be released later this summer.
Manufacturers
and automakers have blasted the administration's investigation into
auto imports, saying it would hurt the economy.
Ross
said it's "premature" to say whether Trump will follow
through with his plan to impose tariffs on auto imports.
The
EU said it would move to hit the United States with as much as $300
billion in retaliatory tariffs over the autos issue.
Russia
on Monday became the seventh World Trade Organization (WTO) member to
request talks with the U.S. over the metals tariffs.
Trump
and Russian President Vladimir Putin will meet later this month in
Helsinki.
Canada,
China, the EU, India, Mexico and Norway have all filed their own WTO
cases.
The
trade cases come as Trump and his administration question whether the
U.S. will withdraw from the WTO, a move that would rock the
international trade world.
Trump
and Ross on Monday continued their criticism of the WTO but said that
withdrawal from the global trade group wasn't happening any time
soon.
"The
WTO has treated the United States very badly and I hope they change
their ways, they have been treating us very badly for many, many
years and that's why we were at a big disadvantage with the WTO,"
Trump said on Monday during the Rutte meeting.
"We're
not planning anything now, but if they don't treat up properly we
will be doing something," Trump said.
Ross
said Monday that it is "little premature" to talk about
withdrawing from the WTO.
"We've
made no secret of our view that there are some reforms needed at the
WTO," Ross said in a CNBC "Squawk Box" interview.
On
Sunday, Axios reported that the White House has drafted a bill that
would allow Trump to skirt Congress and WTO rules on trade, giving
him the power to raise tariffs and set different rates for member
countries with little to no oversight, running afoul of
long-established global trade rules.
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