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US imposes 'America First' tariffs on washing machines and solar panels, analysts sanguine
The White House has approved 30% tariffs as part of its new 'America First' trading policy in response to Chinese and South Korean manufacturers who are "damaging" domestic production.
The US government announced late on Monday it has imposed tariffs on imports of solar panels and washing machines in order to protect local manufacturers from cheap foreign competition. In some cases, the duties on washing machines could add as much as 50% to their price.
'America First' was one of the policies Trump talked about the most while on the campaign trail, promising Americans he would make it harder for countries that "are making our products, stealing our companies and destroying our jobs" to export their wares to the US.
But Monday's actions were not the first linked to the new 'America First' agenda, with Trump having already withdrawn his country from the Trans-Pacific Partnership deal (TPP), the Paris Agreement against climate change and moved to start renegotiating the North American Free Trade Agreement (Nafta).
China and South Korea criticised the measure, with Seoul threatening to file a complaint with the World Trade Organization (WTO) in retaliation.
Samsung, one of those most impacted by the new duties, said the tariffs were "a tax on every consumer who wants to buy a washing machine".
Similarly, a spokesman for Beijing said, "together with other WTO members, China will resolutely defend its legitimate interests."
Trump is set to appear at the World Economic Forum in Davos (Switzerland) on Friday, where he was scheduled to deliver a keynote speech on the US economy, tax reform and his 'America First' doctrine.
Nonetheless, Mark Williams at Capital Economics were quick to point out that the new trade barriers were 'safeguarding' tariffs and not anti-dumping or countervailing duties meant to compensate for unfair competition from overseas.
"The new US tariffs on imports of solar panels and washing machines may be aimed at China but look more like a continuation of the skirmishing of recent years than the first salvos of a trade war," they said.
On the other side of the equation, Williams believed China would be keen to prevent a "minor trade spat" from spiralling into a "more damaging confrontation".