According to Xinhuanet’s report, Chairman and CEO of East West Bank Dominic Ng said, “It looks like President Donald Trump has started to do something in order to live up to another aggressive campaign promising to address trade imbalances after the tax reform has been done last year.”
Ng emphasized the fact that domestic political purpose was behind the decision of higher aluminum and steel import tariffs imposed by Washington on March 8. However, the trade deficit issue may be overstated by the politicians and may lead to the trade war with other countries like China.
“It is a strange phenomenon that the steel and aluminum tariff issue actually has the very small impact on Chinese exporters since only a measly two percent of total U.S. imports of steel products, by value, came from China in 2017. But most people interviewed by local media in street showed they believed China will feel pain,” he said during a recent interview with Xinhua at the bank’s headquarters in Pasadena City of California.
Statistics revealed Canada as the biggest supplier of steel to the United States. South Korea accounts for over 10 percent of all the US steel imports in 2017 while Japan accounts for almost six percent. Moreover, the Europeans are worried steel might have gone to the US and may now find its way to EU. This would pressure local steelmakers even further, find liquor store.
Ng cites in an interview how public opinion in the United States is turning against the free trade. However, they the public does not desire for a trade war, not speaking of a ‘ridiculous’ trade war base on wrong calculations.
“A trade war must have an internecine result,” the banker said. East West Bank has 36 billion U.S. dollars of assets and was listed by the Forbes in January as one of the top five on the annual list of America’s Best Banks 2018.