Trump orders stiff trade tariffs, unswayed by grim warnings
Trump orders stiff trade tariffs, unswayed by grim warnings
The new tariffs will take effect in 15 days, with America’s neighbors indefinitely spared “to see if we can make the deal,” Trump said. He suggested in an earlier meeting with his Cabinet that Australia and “other countries” might be spared, a shift that could soften the international blow amid threats of retaliation by trading partners.
Those “other countries” can try to negotiate their way out of the tariffs, he indicated, by ensuring their trade actions do not harm America’s security.
Surrounded by steel and aluminum workers holding hard hats, Trump cast his action as necessary to protect industries “ravaged by aggressive foreign trade practices. It’s really an assault on our country. It’s been an assault.”
His move, an assertive step for his “America First” agenda, has rattled allies across the globe and raised questions at home about whether protectionism will impede US economic growth. The president made his announcement the same day that officials from 11 other Pacific Rim countries signed a sweeping trade agreement that came together after he pulled the US out of the Trans-Pacific Partnership last year.
Though he focused on workers and their companies in his announcement, Trump’s legal proclamation made a major point that weakened steel and aluminum industries represent a major threat to America’s military strength and national security.
The former real estate developer said US politicians had for years lamented the decline in the steel and aluminum industries but no one before him was willing to take action.
Despite a week of furious lobbying against his plan by Republican lawmakers and some of his own advisers, Trump said he would go ahead with penalty tariffs of 25 percent on imported steel and 10 percent on aluminum. But he also said the penalties could “go up or down depending on the country, and I’ll have a right to drop out countries or add countries. I just want fairness.”
Century Aluminum Chief Executive Michael Bless said the tariffs would allow his company, which produces high-purity aluminum used in military aircraft, to recall about 300 workers and restart idled production lines at its smelter in eastern Kentucky by early 2019. And Trump took note of US Steel’s announcement that it planned to ramp up activity at its plant in Granite City, Illinois, and recall about 500 employees because of the new tariffs.
But there was political criticism aplenty, especially from Trump’s own Republican Party.
House Speaker Paul Ryan, appearing with Home Depot employees in Atlanta, warned of “unintended consequences.” And Sen. Ron Johnson of Wisconsin called the tariffs “a very risky action” that could put agricultural and manufacturing jobs at risk.
“I’m not sure there are any winners in trade wars,” said Johnson, who once ran a plastics manufacturing business in his home state.
Democratic Sen. Dick Durbin of Illinois said Trump’s action was “like dropping a bomb on a flea” and could carry “huge unintended consequences for American manufacturers who depend on imported materials.”
Business leaders, too, sounded their alarm about the potential economic fallout, warning that American consumers would be hurt by higher prices. They noted that steel-consuming companies said tariffs imposed in 2002 by President George W. Bush ended up wiping out 200,000 US jobs.
“Tariffs are taxes, and the American taxpayer will pay the cost of a trade war,” said Cody Lusk, president and CEO of the American International Automobile Dealers Association. “Even with limited exemptions, tariffs will raise the sale prices of new vehicles.”
Stocks ended the day higher after the announcement, with investors relieved by the carved out exceptions for key allies.
At the White House, an upbeat Trump chatted with the steelworkers, invited them to the Oval Office and autographed a hard hat. He invited some of the workers to speak from the presidential podium, and several said that excessive “dumping” of foreign steel and aluminum had negatively affected their jobs and families.
The European Union warned before the announcement that it was ready to retaliate with counter-measures against iconic US products such as Harley Davidson motorcycles, Levi’s jeans and bourbon.
EU Trade Commissioner Cecilia Malmstrom tweeted after Trump’s announcement that “the EU should be excluded from these measures.” Malmstrom said she would be meeting with US Trade Representative Robert Lighthizer in Brussels on Saturday.
The British government said tariffs “are not the right way to address the global problem of overcapacity” and said it would work with EU partners “to consider the scope for exemptions outlined today.”
Canadian Foreign Minister Chrystia Freeland, meanwhile, called the announcement a “step forward” and said Canadian officials had exerted tremendous efforts to get the exemption. “That Canada could be seen as a threat to US security is inconceivable,” she said.
The exemptions for Canada and Mexico could be ended if talks to renegotiate NAFTA stall, the White House said. The talks are expected to resume early next month.
The run-up to Thursday’s announcement included intense debate within the White House, pitting hard-liners against free trade advocates such as outgoing economic adviser Gary Cohn. Recent weeks have seen other departures and negative news stories that have left Trump increasingly isolated, according to senior officials speaking on the condition of anonymity to discuss internal discussions.
World Cup football fakes keep Dubai’s ‘Dolce & Karama’ traders busy
- Dubai's “Dolce and Karama” is the emirate's copycat capital
- Neymar Jr shirts are proving especially popular with local shoppers
DUBAI: Tucked away in an old residential district and far from Dubai’s glitzy air-conditioned malls, the Karama area of the city is doing a roaring trade in selling World Cup football shirts.
But if you’re looking for the genuine article, you may have come to the wrong place.
Karama is Dubai's copycat capital where the knockoff imitations of the world's most famous fashion brands are sold for a fraction of the genuine price.
Known to some locals jokingly by the epithet “Dolce and Karama,” a play on the Dolce & Gabbana Italian fashion house, this is a place where if you have to ask the price, you probably can afford it.
With three weeks to go until football’s new world champions are crowned, the world’s biggest sporting tournament is keeping the tills chiming on the street that has become notorious for selling everything from fake Luis Vuitton bags to knockoff Ray-Ban sunglasses.
However since the tournament kicked off just over a week ago, it’s been football not fashion, that has put a smile on the face of traders.
Retailing for a fraction of their high-street cost, the copycat shirts — especially those bearing the name of Brazilian superstar Neymar — are flying off the stalls less than week into the tournament, as UAE-based fans who want to don the colors of their favorite team or player, look for bargains.
Mohammad Ashraf has been trading in Dubai’s Karama Shopping Complex for 15 years.
At his store, Mina Fashion, Ashraf said the World Cup has brought a booming trade.
When asked how many shirts he would sell prior to the Fifa World Cup, he shrugged.
“Maybe one, two — maximum five a day,” he said.
But the Indian trader has quadrupled his business since last week’s kick-off.
“Now, we have been very busy,” he said. “We sell at least 20 pieces a day — maybe more,” he said.
His football shirts are a fraction of the cost of the genuine article on sale in Dubai malls where retailers are feeling the pressure from the growth of online rivals, the introduction of VAT and the strong dollar to which the UAE dirham is pegged — that is hitting tourist spending hard.
Karama football shirts sell for about 65 dirhams ($18) in adult size and 55 dirhams for children. But the real deal costs three or four times as much a few miles down the road in the Dubai Mall, the city’s biggest tourist draw.
In Karama, the football shirts of the Brazil, Argentina and Germany teams have been among the biggest sellers.
And the most popular player?
Ashraf said shirts bearing the name of Brazilian footballer Neymar da Sila Santos Junior have been flying off the shelves.
Abdulla Javid, runs Nujoom Al Maleb in the Karama shopping district — a shop selling a variety of knock-off sportswear — including World Cup shirts for men, youths and children.
“They are not real, not branded — branded ones are very expensive,” he said.
“We have shirts for Germany, for Argentina, for Portugal, for Sweden, for Brazil and for Belgium,” he said, pointing to racks of multi-colored football shirts.
Mens shirts retail for about 45 dirhams for adult sizes in his shop and 40 dirhams for youths. For young children, he sells shirts and shorts for a combined price of 30 dirhams.
The World Cup has also been a welcome boom for business.
“Before we sell maybe between five to 10 (shirts) a day,” he said. “Now, at least 20 to 30 pieces a day. It has been very busy. This time is a good time for us.”
Also at Karama Shopping Complex is Zico Sports.
Ahmed Jaber, a 53-year-old trader, said there are good deals to be found in at the shop he has worked in since the 1980s.
He sells football shirts that are both “branded” and “non-branded” — in other words the genuine article and cheaper knock-offs.
He said customers have been happy to shell out for the genuine football shirts for the adult sizes — which he sells for 379 dirhams, but for children, shoppers prefer to buy the fake football shirts, which he sells for about 30 dirhams.
The most popular shirts since the start of World Cup have been for Brazil, Argentina and France, he said, but his shops have an abundance of kit for all competing countries.
When he asked how the 2018 World Cup had been for business, he laughed.
“Not bad at all!,” he said.