Ross said that concessions that were perfectly reasonable to make to Germany in 1945 or China in 1945 don’t make sense anymore. Those are now very mature, big, strong economies.
So, there is a lot of history that needs to undo. President Donald Trump signing an executive order that would impose a flat 25 per cent imports tax on steel and 10 per cent on aluminium.
There has been sharp reaction from countries with the European Union and China indicting retaliatory measures.
Trump said that if the EU wants to increase their taxes and barriers on US companies doing business there, the taxes will be applied on cars, which freely pour in to the US.
Ross explained that if we have big trade shortfall with our other partners, they have a lot more to lose than we do, because those hundreds of billions of dollars are in their pockets now, not ours.
He disproves reports that increase in import tax on steel would hurt American industries in particular the car manufacturing industry.
Similarly, the total amount of taxes are putting on is about USD 9 billion in a year. That’s a fraction of one per cent of the American economy. Ross concluded that US will not offer imported tax concession
So, it can destroy a lot of jobs, raise prices. The amounts that they are talking about are also pretty insignificant. It’s some USD 3 billion odd of goods that the Europeans have threatened to put something on.