Donald Trump is a man of action. Unlike previous presidents, he is not really bothered about world opinion and what other countries think about him and the USA. He has now proposed fresh tariffs on the import of Steel and aluminum from other countries. His aim ostensibly is to help the US home industry. This is a commendable approach except that all the trading partners of the USA are up in arms against this proposal. BBC has reported that Trump made this announcement flanked by nearly a dozen executives representing US Steel and Arcelor Mittal, which incidentally is owned by an Indian.

Reaction of China

Donald Trump has been repeatedly stating that foreign countries, in particular, China, have been dumping cheap goods into the USA. he feels this has harmed American industry. He is of the view that any country which does not produce steel and aluminium in large quantities for its own industry is doomed. He has thus decided to impose higher tariffs on all imported steel and aluminium items.

The Chinese reaction has been guarded and no significant statement has emerged. China produces 50 percent of the world's steel and if Trump goes through with this plan it will be the country that will be most affected. Other countries like Brazil, South Korea, Canada and Australia are up in arms against the proposal and have termed it an "unfair trade practice".

US steel

Donald Trump, however, is not worried by these allegations. In a way he is correct, because the US steel industry is languishing. The workforce which was 136,000 in 2008 is now reduced to 83,000. American imports of steel are four times its exports and this is creating an unfavorable trade balance

Trump has vowed to rebuild the US steel and Aluminium industries, which in his opinion have suffered badly because of the "disgraceful" treatment meted out by other nations.

In particular, he has singled out China as a country which indulges in unfair trade practices.


China has not officially given any response but Brazil and Australia have said that they will retaliate against the extra import duty which Trump plans to impose. Donald Trump had made it clear during the elections trail that he would do everything in his power to see that America becomes great again.

It appears that the local senior executicves of American Steel and aluminium products are in solidarity with Trump. They were lagging behind and this decision by Trump, if followed to its logical conclusion, will be a shot in the arm for the local American industry. One will have to wait and watch and see how the scenario unfolds in the days to come