US President Donald Trump has brushed off concerns that new tariffs the US has imposed on imported washing machines and solar panels will lead to a trade war.
The announcement of the tariffs – of up to 50% – have prompted outcry from China and South Korea, the primary targets of the measure.
Some US businesses that rely on the imported products are also concerned.
Mr Trump dismissed the talk and said the tariffs would add jobs in the US.
At a signing ceremony on Tuesday, he said they “demonstrate to the world that the United States will not be taken advantage of any more.”
“There won’t be a trade war,” he later added.
The action is part of US President Donald Trump’s “America First” trade policy, which aims to protect local manufacturers from foreign competition.
South Korea said it would complain to the World Trade Organization (WTO).
China, the world’s biggest solar panel producer, said the move was an “overreaction” and pledged to “work with other WTO members to resolutely defend its legitimate interests”.
India’s Prime Minister Narendra Modi spoke against tariffs at the World Economic Forum in Davos in an apparent reference to the US measures, although India’s own finance ministry is planning a 70% tariff on Chinese solar panels.
“Forces of protectionism are raising their heads against globalisation. Their intention is not only to avoid globalisation themselves but they also want to reverse its natural flow,” Mr Modi said.
Samsung, a South Korean company, said consumers in the US would be negatively affected by the measures.
“Everyone will pay more with fewer choices,” a company statement said.
South Korea’s LG Electronics also said the move would harm employment prospects at its new factory.
Mexico said it was “regrettable” that it was not excluded from the tariffs, adding that it would “use all available legal resources in response to the US decision”.
In the US, the Solar Energy Industries Association, which campaigned against the decision, estimated that 23,000 American jobs would also be lost. It believes the US will not be able to keep up with demand for panels, meaning there will be less work for those producing complementary technology and fittings.
The tougher policy was approved by President Trump after the US International Trade Commission (ITC) found local manufacturers were being hurt by cheaper imports.
Manufacturing companies – Whirlpool, a US-based maker of washing machines, and the solar firms Suniva and Solar World Americas – had complained to the ITC and it found in their favour.
The ITC said that China had been selling “artificially low-priced” solar components in the US, assisted by state subsidies.
Mr Trump has talked about taking the action ever since coming to office. In his inauguration speech a year ago he promised to protect US borders from other countries “making our products, stealing our companies and destroying our jobs”.
Source- BBC
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