Swapping aluminum for copper will maintain China’s resources, group says
China depends on overseas imports for 60% of its aluminum resources as opposed to 70% of its copper resources.
US President Donald Trump’s proposed tariffs on steel and aluminum imports are a “black day” for the world and businesses, BHP chief executive officer Andrew Mackenzie said Tuesday.
Speaking at the AFR Business Summit, the leader of the world’s biggest miner said Trump’s protectionist move was just a way of propping up an uncompetitive industry.
He was referring to the White House’s plan to hike tariffs on imported steel by 25% and by 10% on aluminum, which are expected to be discussed later this week in a meeting organized by the government’s economics adviser Gary Cohn.
BHP chief executive officer Andrew Mackenzie said Trump’s protectionist move was just a way of propping up an uncompetitive industry.
Cohn is calling producers and executives from steel-dependant companies to meet with the President on Thursday to fight the announced increases.
“I am worried that people all around the world might suddenly say that free trade isn’t good for the world,” Mackenzie said during a panel on the economy. “That would be particularly bad for a trading company like BHP […] We have to speak up loudly against these measures as being bad for America and bad for the world,” he said according to Bloomberg.
Australia is hoping Trump will fulfil a promise made on the sidelines of last year’s G20 summit to exempt its steel and aluminum. However, Trump has said he’s not considering any exclusions to the measure.
US Republican leaders, in turn, have expressed their worries about a potential global trade war, arguing it could hit American jobs and undermine the benefits of recent corporate tax cuts.
In a letter to Trump published Tuesday, American aluminum producers told the President they were “deeply concerned” about the effect global tariffs would have on their industry, including jobs.
The group, which represents 114 producers and other companies, including Alcoa, Vulcan and Rio Tinto Alcan, offered alternatives such as a tariff specifically targeted to China’s aluminum industry and an exemption for Canadian, European and other foreign producers.
5 Comments
The Observer
Another good excuse for BHP to further cut back the wages of the Contractors who do all their work for them, so there shareholders can continue with 33% yearly dividends. Blame everything on Trump, but it’s not Trump who has destroyed W.A’s economy.
Steve
Oh shut up… finally someone is pushing back against the C-Suite and shareholder profits at the expense of the average worker. Sure, you do not like the fact that your little money-laundering and slave labor scheme is about to be exposed. Off-shore your riches. Outsource the workforce to the cheapest country and as soon as that country becomes expensive, find another.
Guest
The entire planet is a giant Celebrity Apprentice for this petulant child POTUS! I voted for this guy, with my nose firmly held so I would not smell either him or rotten Hillary. What a choice as we are seeing over the last 14 months. Trump says one thing and does another. When the poorly educated stooges who voted for him wake up and see how totally he has screwed them, it will be too late for anything except the screaming and crying!
2010krank
So I guess you are one of the poorly educated stooges then.
Douglas Smith
Ladies and gentlemen: fair trade means fair for all concerned. Washington state can not sell Red Delicious apples in Japan because the high tariffs push the costs to an equivalent $2.00 each while Fuji apples from Japan sell in Washington state on a competitive price. Is that fair? Of course, not. The U.S. since Reagan has been on the short end of the stick with no negotiating leverage whatsoever when it comes to trade with other nations. President Trump is giving the U.S. bargaining chips in the form of tariffs to negotiate fair trade. Now, when the U.S. sits down with Japan fair trade will result and Washington apples will sell in Japan for $1.00 and Fuji apples from Japan will sell in the U.S. for $1. Have a little faith and patience fellow Americans.