Donald Trump dismisses trade war fears but no back down on tariffs

Donald Trump dismisses fears of ‘trade war’ but says he won’t back down from sweeping tariffs despite Republican concerns.

Donald Trump isn’t backing down on sweeping tariffs. Picture: AP.

Donald Trump has dismissed fears of a “trade war” but says he is not “backing down” from plans to impose sweeping tariffs on steel and aluminium imports, stirring deep divisions as senior Republicans urge the US President to reconsider the move.

Speaker Paul Ryan and Republican colleagues are lobbying Mr Trump to drop the tariffs amid rising concerns they will undermine the $1.5 trillion tax cut overhaul passed late last year and affect upcoming midterm elections.

“We are extremely worried about the consequences of a trade war and are urging the White House to not advance with this plan,” Mr Ryan’s spokeswoman said.

“The new tax reform law has boosted the economy and we certainly don’t want to jeopardise those gains.”

Members of the House Ways and Means committee have also drafted a letter to the President expressing concern about “the prospect of broad, global tariffs on aluminium and steel imports”.

The growing backlash comes four days after Mr Trump made the surprise announcement that he would levy tariffs of 25 per cent and 10 per cent on steel and aluminium imports on the grounds of “national security”.

He is expected to formally sign the new tariffs into law later this week.

Asked about Mr Ryan’s comments while meeting with Israeli Prime Minister Benjamin Netanyahu in the White House, Mr Trump declared: “We’re not backing down”.

He said he would only lift tariffs on Mexico and Canada, the biggest importer of steel and aluminium products, if a “new and fair” North American Free Trade Agreement (NAFTA) was signed.

“We are renegotiating NAFTA as I said I would and if we don’t make a deal I’ll terminate NAFTA but if I do make a deal, which is fair to the workers and to the American people, that would be I would imagine one of the points that we’ll negotiate, will be tariffs on steel for

Canada and for Mexico,” Mr Trump said.

“People have to understand our country on trade has been ripped off by virtually every country in the world, whether it’s friend or enemy, everybody. China, Russia, and take people that we think are wonderful — the European Union — we can’t do business in there. They don’t allow it. They have trade barriers that are worse than tariffs.

“If they want to do something we’ll just tax their cars that they send in here like water. We may have friends but remember this, we lost over the last number of years $800 billion a year.”

Ramping up his rhetoric against China — the 11th largest exporter of steel to the US — Mr Trump said the Asian superpower was “the biggest problem”.

“The biggest problem is China. We lost $500bn. How previous presidents allowed that to happen is disgraceful but we’re going to take care of it.”

But he added: “I don’t think you’re going to have a trade war.”

Canada, America’s largest trading partner, has warned of retaliatory measures while Australia is urgently seeking exemptions for the $US210m in steel and $US213 in aluminium imported annually to the US.

The White House has ruled out granting exemptions to countries unless Mr Trump himself changes his mind.