The USA Protectionism

Running Head: PROTECTIONISM
THE USA PROTECTIONSIM
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PROTECTIONISM 2
President Donald Trump recently proposed a bill to implement a 25% tariff rate on the
importation of steel. He also suggested that aluminium imports should have a 10% tariff. The
latter proposals were in response to a national security recommendation.
However, the exports from Australia (mostly steel and aluminium) will get an exemption
from the tariff that the USA president proposed. The primary factor in the decision on taxes was
the strategic alliance that both the USA and Australia have in common (McBurnie & Ziguras,
2013). The move from President Donald Trump is a vivid indication that given the future
additional tariffs are imposed on the other firms; then there will be a likelihood of a lesser impact
on the exports that the Australian government export to the United States of America.
The tariffs are however known to be a representation of a significant vitality as far as the
global trade policy is concerned. The Australian businesses that have their operations
everywhere around the globe need to assess the supply chains that they operate in and also come
up with development strategies of sourcing to make sure that they are incredibly agile in their
reaction to any additional actions by the United States of America. The latter will come in
addition to the likely retaliatory measures of the countries that are not exempted (Walter & Gray,
2015).
The United States president: President Donald Trump’s announcement that would see the
implementation of a 25% rate of tariff on the importation of steel and a 10% tariff on the import
of Iron ore saw some critics giving out a suggestion that the united states of America were just a
move that would easily drag the entire universe to a potential universal trade war. The decision
was based on the findings that the performance of the United States steel and aluminium
industries posed a great danger to the matters of national security (Salvatore, 2013). The
president’s move to impose tariffs on aluminium and steel was also supposed to address the issue

PROTECTIONISM 3
concerning the universal systemic overcapacity and even the global dumping of steel and
aluminium.
The move represented the very first one towards protectionist action by the United States
of America since the countries withdrawal from the partnership called transpacific. The decision
by the president was expected to yield short-term benefits for a given portion of the economy of
the United States of America's economy. The move on the protectionist trading system is also
likely to cause adverse impacts on the growth and development across the globe (Nollen &
Quinn, 2014).
United States is one of the countries which hold on the policies on tariffs tightly. The number of
countries that have been imposing non tariffs has gone down as from 1990-2015.however, the
number rose again recently and USA has made trade not free at all in the country. The following
diagram is meant to help us understand the impacts of tariffs on the economy..