The world has made strides in operation as a village alluding to the opening of borders to embrace international trade by nations. Importation and exportation of goods have been made easier by the elimination of barriers. Exchange is vital as it hands citizens with increased quantities inputs for utilization in production. However, some nations still deem it fit setting the huddles, such as the use of tariffs and quotas on goods, to alter the natural flow of international trade.

The president of the United States of America recently announced plans on stiff tariff imposition on imports of steel and aluminum products. The move in line with his campaign promises where he had promised to intervene. Protection of the two metal industries explains his resolve as he felt the nation characterized by being on the receiving end of unfair policies which hurt their production. The relevance of the move to international trade is the move deemed to affect relations with global partners; China and Canada on the forefront. Canada, the largest exporter of steel and aluminum to America and the military, would be adversely affected by the upcoming sanction. The resultant effect would spring trade battles as other countries would seek retaliation for the ill-advised undertaking. Jovanovic opines that there exists a mutual relationship intertwining international trade and investment flows.

The flow of the metals bolsters allies in conducting business. The eminent imposition resulted in a fall in stocks in the industrial sector. Allies being compromised would result in opposition consequently negatively affecting the economy. Countries practice enactment of tariffs and quotas on imported goods to protect the domestic industries producing similar products. The act should be exercised with caution since international trade is beneficiary.

 
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