Trump tariffs to hit these countries hardest
As the Trump administration escalates trade spats with a slew of the nation’s largest trading partners, most recently threatening to impose additional tariffs on Chinese goods, some countries stand to lose hundreds of millions – or even billions – of dollars.
The 25% steel and 10% aluminum tariffs, in particular, have potentially wide-reaching consequences, as President Trump made the decision earlier this month not to extend exemptions for the European Union, Mexico and Canada.
Here are the countries with the most to lose as a result of the steel and aluminum levies, according to a new study by French credit insurance firm Euler Hermes, a subsidiary of German financial services company Allianz SE:
Canada
U.S. neighbor to the north, Canada, stands to lose the most as a result of the steel and aluminum tariffs. According to the study, the Canadian economy will see losses around $2 billion, far outpacing all other countries on the list.
Canada was the United States’ second-largest trading partner in 2017, according to data from the Bureau of Labor Statistics, accounting for more than 16% of the United States’ overall trade. So far this year, Canada and China comprise the largest percentages of the country’s total trading volume, at 15.1% apiece.
Brazil
Following Canada, Brazil is the second potential biggest loser. The country could lose more than $651 million as a result of the U.S. tariff policy.
In 2017, Brazil accounted for 1.7% of the United States’ overall trade percentage. So far this year, the South American country ranks at 14 among the United States’ top 15 trading partners.
Russia
Trump administration’s steel and aluminum tariffs could cost Russia more than $651 million.
Retaliation from Moscow could have a more muted impact on the U.S., however. Last year, Russia was not among the United States’ top 15 trading partners.
China
China, with whom overall trade tensions with the U.S. are escalating, could take a hit of $554.2 million from steel and aluminum levies alone. The bulk of the losses will result from the 25% tariff on aluminum.
Aside from tariffs on steel and aluminum, the Trump administration has imposed tariffs on $50 billion worth of Chinese goods. China responded with levies valued at an equal amount on American-made imports.
This week, Trump threatened to impose duties on another $200 billion worth of Chinese goods, intensifying fears of a trade war escalating between the world’s two largest economies.
South Korea
U.S. ally South Korea could be down as much as $554 million, with the majority of losses resulting from the 10% steel tariff.
So far this year, South Korea ranks seventh among the United States’ top 15 trading partners.