Stay tuned folks, this will have implications on economies and stock markets worldwide!
A new economic analysis of President Trump's proposed trade tariffs on steel and aluminum appears to paint a grim picture of the consequences - some 146,000 jobs lost, according to a recent analysis. In 2017, Indian steel exports to the U.S. accounted for only 5% of the total. Summers said tariffs would actually worsen deficits by making US companies that ship steel and aluminum overseas less competitive, and by inviting foreign retaliatory tariffs against other exports.
The price of steel is likely to rise in the short term in the USA, with flow-on effects to the building and defence industries, potentially pushing up inflation.
The possible global trade war comes as the European Union tries to reinforce multilateralism and free trade at a time when Trump is steering the USA towards protectionism with his "America first" policy.
It's not about China, yet..
The steel and aluminium tariffs were recommended by Commerce Secretary Wilbur Ross after a report from his agency concluded that the glut of the metals on global markets was a threat to USA national security.
Most responses to Trump's proposed tariffs have been targeted.
"Geopolitically, there is a misconception that it's about a pending US-China trade war", Dr Giovanni Di Lieto, an worldwide trade law expert from the Monash University Business School, told SBS News. However, there were additional reasons for these closures, most notably the high cost of American electricity vis-à-vis other countries. Also, American steel production hasn't changed much over the past decades.
Adding insult to injury, the Trump administration is invoking a rarely used "Section 232" of a 1962 US trade regulation that allows for import restrictions in order to protect national security.
"So now we will also impose import tariffs".
But it could be about China, soon.. "There is no final plan", said one outside Trump adviser, who spoke on condition of anonymity and said formal action was unlikely this week. We have been there before: The trade wars of the early 1930s helped to trigger, then deepen and prolong, the Great Depression.
"Prospectively we may see across-the-board tariffs imposed on Chinese imports as retaliation against Chinese intellectual property rights violations", Dr Kirchner said.
And once again, countries around the world who thought of themselves as friends and allies of the USA are considering how they will fight back.
Republicans fear a trade war will wipe out majorities in midterm elections.
Although China is the second largest aluminum exporter to United States, it accounts for less than 10 percent of U.S. aluminum imports, trailing far behind Canada's 41 percent share. In terms of global trade, they are just 0.6 percent, the bank said. "But Trump is incredibly unpredictable".
For Australia, it is a mixed bag. China's and India's industrial expansions have fueled massive overcapacity, hitting margins in the United States and Europe.
A container ship is docked at the Port of Brisbane, Wednesday, February 7, 2018.
Not only that, Trump's comments also fly in the face of facts as outlined by the USA government's own trade officials.
"People have no idea how badly our country has been treated by other countries". "We can still play on both tables". "We don't know yet", Portman added.
Trump's policies have often turned out to be less extreme than expected. But those court cases take about 18 months to wind their way through WTO courts, and Trump's trade team has indicated it may not respect all WTO rulings anyway.
The protectionist push also represents a fulfilment of Trump's campaign promises.
Last Thursday, the president said we needed tariffs because "they've destroyed the steel industry". "I don't think the Canadiansare cheating us".
Card is the latest high-ranking Bush administration official to warn Trump of just how bad it could get economically and politically if he proceeds. "It will be very harmful to the United States economy... and very bad for the worldwide trading system".