Steel, aluminum tariffs prompt global backlash

WASHINGTON—U.S. trading partners did not react well to President Donald Trump’s Thursday announcement to impose hefty tariffs on steel and aluminum imports. Shortly after the president’s statement—laying out a plan to levy a 25 percent steel tariff and a 10 percent aluminum tariff on all imports starting next week—global markets began to decline. On Thursday, the Dow Jones Industrial Average shed 1.7 percent, Japan’s Nikkei lost 2.5 percent, and Hong Kong’s Hang Seng closed down 1.5 percent. Trump said the tariffs are needed to boost jobs in the United States by allowing more steel and aluminum production at home. China, the world’s largest steel producer, asked Trump to reconsider his position. “The United States [should] show restraint in using protective trade measures, respect multilateral trade rules, and make a positive contribution to international trade order,” Chinese Foreign Ministry spokeswoman Hua Chunying said. Brazil, the second-largest exporter of steel to the United States, expressed “enormous concern” regarding the proposed tariffs and may protest the decision, according to Reuters. European Commission President Jean-Claude Juncker said on Thursday the European Union will take retaliatory action if Trump goes ahead with his plan. The president tweeted on Friday morning that “trade wars are good” and the United States continues to lose billions each year on trade deficits: “We must protect our country and our workers.” He added. “Our steel industry is in bad shape.”