Trump Tariffs Are Free Trade Collapse - BHP CEO

According to the largest mining company, President Donald Trump's plans to reduce tariffs on steel and aluminum imports are a rainy day for the world and business.

BHP Billiton Ltd. and its rivals could be hurt if other countries follow the US move towards more protectionist and unfree trade, chief executive Andrew Mackenzie said at a business summit in Sydney on Tuesday. US tariffs are "a black day for the world and business," he said.

“I am worried about this shift in sentiment where people around the world can suddenly say that free trade is not good for the whole world, and that would be especially bad for a trading company like BHP,” McKenzie said during a panel on economics. "We must speak out loudly against these measures as bad for America and bad for the whole world."

BHP joins the voice of global criticism from business and government in disapproving Trump's plans to impose tariffs of 25 percent on imported steel and 10 percent on aluminum. His surprise announcement on Thursday boosted global financial markets amid growing concerns about an international trade war.

“Free trade appears to be the lifeblood of the global economy, and we expect it to flourish despite the sad events in the US,” McKenzie said. Outside the US, “we are seeing a floating economic environment based on the growth of free trade,” he said.

The move comes after an inquiry provoked by American steelmakers that they were worn out by cheap products from China and other countries. Mackenzie said he would like the US and China to work more closely despite the ongoing conflict.

“I can certainly see the tension,” Mackenzie said. "I hope that over time they can find a way to work together."