By raising tariffs on steel and aluminium the US president has delivered on a campaign promise. US steel and aluminium producers gain, but it comes at the expense of US metal consuming firms. Foreign metal producing countries also stand to lose. Canada, Mexico and Australia may be exempt from the metals tariff, turning them into winners. The overall economic impact is limited. The real threat is that the measures are a prelude to a global trade war, especially now that advisors of the US president with strong protectionist views have gained the upper hand. A new trade environment looms.
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