News / Economy

Trump tariffs start hurting US businesses, one victim is Iowa pork industry

Saturday, 02 June 2018 8:30 PM [ Last Update: Sunday, 03 June 2018 2:17 AM ]

Republican presidential candidate Donald Trump eats a pork chop on a stick and gives a thumbs up sign to fairgoers while campaigning at the Iowa State Fair on August 15, 2015 in Des Moines, Iowa. (Photo by AFP)

US President Donald Trump’s attack against key allies in trade has already started squeezing some US companies but the president insists that he won’t engage in "stupid trade."

For one thing, Trump’s tariffs, imposed on Thursday, have cost Iowa pork producers roughly $560 million over retaliation from Mexico, the largest export market for American pork.

Apart from that, the US allies are rushing to file cases against the United States at the World Trade Organization (WTO).

TOPSHOT - The World Trade Organization (WTO) headquarters are seen in Geneva on April 12, 2018. (Photo by AFP)

Firms manufacturing products using metals are also complaining about higher material prices, forcing them to raise the price of the products.

Despite that, the president took to Twitter Saturday to defend his decision against Canada, Mexico and the European Union.

“The United States must, at long last, be treated fairly on Trade,” he said. “If we charge a country ZERO to sell their goods, and they charge us 25, 50 or even 100 percent to sell ours, it is UNFAIR and can no longer be tolerated. That is not Free or Fair Trade, it is Stupid Trade!”

PressTV-Debate: Trump’s trade wars

This episode of The Debate discusses the consequences of Trump's planned tariffs on steel and aluminum imports.

Canada, Mexico and the EU had initially been exempted from the tariffs of 25 percent on imported steel and 10 percent on imported aluminum as they were announced in March.

"Let me be clear: These tariffs are totally unacceptable," Canadian Prime Minister Justin Trudeau said the Thursday announcement.

Canada and Mexico had been exempted from the tariffs as the three nations were discussing the North American Free Trade Agreement (NAFTA) but Commerce Secretary Wilbur Ross said that trade talks had not advanced enough.

British Prime Minister Theresa May (pictured above) also criticized the new tariff, calling them unfair.

“I am deeply disappointed at the unjustified decision by the US to apply tariffs to EU steel and aluminum imports,” May said in a statement. “The US, EU and UK are close allies and have always promoted values of open and fair trade across the world… Our steel and aluminum industries are hugely important to the UK, but they also contribute to US industry including in defense projects which bolster US national security.”

The British premier further voiced hope for the EU and UK to “be permanently exempted from tariffs.”

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