Stocks set to fall sharply after Gary Cohn resigns

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White House trade adviser Peter Navarro told Fox Business Network that aides will be in the Oval Office at 3:30 p.m. ET "with a bunch of men and women from steel country and aluminum country coming in to see the president".

"The number of bad ideas that have come though this White house that were thankfully killed dead - there are too many to count", an unnamed White House official says. If the experience with the Smoot-Hawley Trade Act of 1930 is anything by which to go, the USA economic recovery could very well be derailed by such a trade war.

In a tweet, Trump said that China has been asked to develop a plan for the year for a United States dollars 1 billion reduction in the trade deficit. Kevin Brady, chairman of the House Ways and Means Committee that oversees trade issues, Trade Subcommittee Chairman Dave Reichert and 105 other GOP lawmakers issued a statement on Wednesday warning that broad tariffs could cost jobs, increase prices for consumers and hurt U.S. manufacturers.

Weekes said Canada should draw up a long list of possible targets for retaliation, and publish it for public comment. "We cannot see how the European Union, friends and allies in North Atlantic Treaty Organisation, can be a threat to worldwide security in the USA", she said. But in states such as Wisconsin and Michigan, Trump's actions will have the opposite effect, creating incentives for manufacturers to move across the border to Canada in order to avoid the tariffs.

Appearing on the TODAY show this morning, Bishop argued import tariffs could spark a trade war in which "everyone loses".

These new tariffs have shed light on the flaws of Section 232 and the plain lack of congressional oversight during the Commerce Department's investigation into the impact of steel and aluminum imports.

Trump has proposed imposing a 25 percent tariff on steel and 10 percent tariff on aluminum - a move that aims to deliver on his campaign promise to deliver trade deals that are more favorable to the United States, but one that has put him at odds with foreign trade allies and top-ranking Republican lawmakers who have urged him to drop the plan. "He and Trump agree on an America First policy when it comes to trade and other issues, so he has emerged as a policy force in this administration".

The tariffs would impose duties of 25 per cent on steel and 10 per cent on aluminium to counter cheap imports, especially from China, that the president says undermine U.S. industry and jobs.

It was not immediately clear whether the proclamation would list countries to be exempted as pressure grew for Trump to exclude USA allies from the action.

On the other hand, Sanak Mishra, former managing director of SAIL's Rourkela Steel Plant, told PTI the decision may not have a significant impact on India as of its total steel imports, USA imports only 2% from India. He says it would risk the economic momentum spurred on by the new tax law.

"Choosing a trade war is surely the wrong prescription, in the end you will only hurt others and yourself", he said.

OIL: Benchmark U.S. crude lost 49 cents to $62.11 per barrel in electronic trading on the New York Mercantile Exchange.

That soothed worries that the Trump Administration could lean more towards protectionist policies after the departure of his top economic adviser Gary Cohn.

And if other countries decide to hit back with their own tariffs on United States goods, export-dependent industries such as agriculture will become less competitive overseas. But he may consider negotiating with Canada and Mexico if they are willing to negotiate better terms for NAFTA.

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