Even if new tariffs on steel and aluminum spark an international trade war, President Donald Trump is confident the United States would come out on top.
“When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win,” Trump tweeted on Friday morning. “When we are down $100 billion with a certain country and they get cute, don’t trade anymore – we win big. It’s easy!”
The president appeared to be referring to his earlier comments on the current U.S.-Mexico trade deficit, a figure he claimed tops $100 billion.
Trump announced Thursday that he will impose 25 percent tariff on steel and a 10 percent tariff on aluminum as early as next week in an effort to force partners into “fairer” trade agreements.
The move helped spark a 420-point drop in the Dow Jones industrial average Thursday, as shares of Boeing and General Motors and other manufacturers that use steel and aluminum fell. Futures pointed to more losses Friday amid the tweet by Trump as traders took it to mean the president was sticking to this plan despite criticism from countries like Canada and Japan, companies, trade groups and members of Congress overnight.