CANBERRA, March 3 (Xinhua) — By imposing tariffs on imported products, the United States will weaken the industries it intended to protect, Andrew Forrest, founder and chairman of Australia's Fortescue Metals Group, said on Friday.
Forrest's Fortescue Metals Group is among the world top four iron ore producers.
"Whether or not there are tariffs put on certain products, remember that's happened since time immortal. Countries have been filling around with tariffs and protections," Forrest told Xinhua in an interview.
"What has always happened though is those countries who protect its certain industries have rounded up with a lot weaker industries."
U.S. President Donald Trump has announced to impose 25 percent of tariff on steel and 10 percent of tariff on aluminium products into the U.S. market.
Forrest said Australia stopped protecting its car industry but "we are now much stronger in the industries which we are best at."
"Countries should specialize where their strongest (area) is."
Forrest said Trump's decision to place tariffs and protections all over the American economy is an attempt to "appease election promises."
"All the experienced commentators know that that'll really hurt the U.S. economy. So if there is a tariff here and tariff there, just trying to appease election promises, it doesn't worry me."
Australian government officials and media share Forrest's view on the U.S. tariff decision.
Trade and Investment Minister Steven Ciobo said on Friday that he felt disappointed with the U.S. move.
During his visit last week to the United States, Australian Prime Minister Malcolm Turnbull raised this issue and tried to secure an exemption for Australian steel and aluminium exports to the United States.
Washington is yet to agree and is about to announce the details of the tariff policy next week.
"The imposition of a tariff like this will do nothing other than distort trade and ultimately we believe will lead to a loss of jobs," Ciobo said.
"If we do see trade sanctions put in place and retaliatory action from other major economies, that will dampen economic growth. The consequences of that are never good for anybody."
Australia's interests in the U.S. market in both steel and aluminium represent around 274 million Australian dollars (212 million U.S. dollars) for steel and 276 million for aluminium.
An article published on the Weekend Australian on Saturday said tariffs mean pain for all and the U.S. trade barrier will hurt American consumers first, as the cost for products from cars to chocolate candies, which use steel and aluminum for manufacturing and package, will soar as a result.
