Trump's steel and aluminum tariffs may impact London’s 2018-2019 budget

A report discussed during London’s corporate services committee meeting on Tuesday September 25 showed that London could be hit by the side effects of Trump’s 25 per cent tariffs on steel and 10% on aluminium. Whoever is elected during municipal election will have to find a way out to manage the fallout of Trump’s tariffs.

“The estimated impact of steel and aluminium tariffs could be close to $10 million over planned budgets for the next five years,” the report reads.

“Purchasing that would most likely be impacted includes fleet vehicles and equipment for the city (including fire and police), new and refurbished facilities and transportation or pathway projects that include bridges,” the report added.

According to London Chamber of Commerce CEO Gerry McCartney the tariffs will slow down job creation, construction, and profitability.

The costs brought about by the tariffs will either be passed on to the end –consumers or the companies will be paying more taxes adding to costs.

McCartney said until Americans tell Trump the tariffs are impacting them negatively, the president is going to continue on his “rant.”

He said that, when America’s domestic consumers will be hit by a price hike in things like motorcycles and cars and beer cans and soup cans, they would push the administrations against the tariffs. Many end –user companies are already lobbying against the tariffs.

McCartney said Foreign Affairs Minister Chystria Freeland is doing an admirable job of focusing on relationships, and “staying the course.”

Canada, according to him needs to push further for the agenda.

“There’s going to have to be some give and take, there’s no question about it. I think you’re going to see some of that in the days ahead.”

The European Union (EU) has introduced retaliatory tariffs on €2.8bn (£2.4bn) worth of US goods like bourbon whiskey, motorcycles and orange juice in June. President Trump threatened to go further by slapping a 20% tariff on all imported EU cars. London city staff say the likelihood that the tariffs will impact the 2018-19 budget is high.