Donald Trump’s Import Restrictions To Affect US Economy Too: IMF

| March 3 , 2018 , 18:06 IST

After industry bodies and associations, the International Monetary Fund (IMF) too has criticized the imposition of 25% tariff on steel imports and 10% tariff on aluminium imports in the United States.

IMF has warned the Trump administration that the move would cause damage not just outside the US but also to the economy itself.

IMF spokesperson Gerry Rice on Saturday said, “The import restrictions announced by the U.S. President are likely to cause damage not only outside the U.S. but also to the U.S. economy itself, including to its manufacturing and construction sectors, which are major users of aluminum and steel. We are concerned that the measures proposed by the U.S. will, de facto, expand the circumstances where countries use the national-security rationale to justify broad-based import restrictions.”

“We encourage the U.S and its trading partners to work constructively together to reduce trade barriers and to resolve trade disagreements without resort to such emergency measures.” Rice further added.

The move has been severely criticized by the automakers that have gone on record stating that the tariffs will lead to a boost in car prices in the USA.

Also Read: Trump Mocks 'Beautiful Man' Modi, Slams India Again On Harley-Davidson Taxes

Honda Motors in an official statement said that these imprudent tariffs would hike prices of both domestic and imported products and will lead to an unnecessary burden on consumers.

Global Automakers’ representative John Bozella on Friday said that this move would force automakers to pay for the increased tariff from investments that were earmarked for new products and plants.