U.S. May Be 'Headed to a Trade War'
Wendy Cutler on CNBC
On March 6, 2018, ASPI Vice President Wendy Cutler joined CNBC's "Squawk Box" to discuss the potential economic and strategic ramifications of U.S. President Donald Trump's plan to impose tariffs on foreign steel and aluminum.
Cutler expresses concern at the Trump administration's apparent linkage of proposed tariffs on steel and aluminum to its renegotiation of the North American Free Trade Agreement (NAFTA). Canada is the largest exporter of steel to the U.S. and Mexico is the fourth-largest. As close allies of the United States, Cutler notes that Canada and Mexico are "probably scratching their heads" at being considered threats to U.S. national security under the Department of Commerce's "Section 232" investigation.
Rather than risk a potential trade war by imposing tariffs on allies, Cutler argues that the Trump administration could instead address "unfair trading practices" by working with key partners to "present a cogent case" to countries such as China to open and reform their markets.