Economy

Steel and aluminum tariffs to apply to EU, Mexico, Canada

Steel and aluminum tariffs to apply to EU, Mexico, Canada

The EU trade commissioner, Cecilia Malmstrom, said the EU "did everything to avoid this outcome".

The President's decision to pursue his "America First" programme will raise concerns about deteriorating transatlantic relations.

That would be imposing 25 per cent tariffs on steel imports and 10 per cent tariffs on aluminum imports from every major (and minor) metals-producing country around the world except Argentina, Australia and, in the case of steel, Korea, effective Friday.

Trudeau said Canada supplied "aluminum and steel to the USA defense industry, putting aluminum in American planes and steel in American tanks".

'We absolutely do not rule out counter-measures.

The European Union immediately threatened retaliatory measures, as well as continuing its appeal to the World Trade Organisation dispute.

The trade spat comes amid ongoing NAFTA negotiations between Canada, Mexico and the United States.

The FTSE 100 has fallen since the news broke but is still just in positive territory, up 0.085 per cent for the day.

The three close USA allies had been part of a small group of foreign governments that received temporary exemptions from the tariffs, until trade deals could be signed.

The EU backlash started with the bloc promising to retaliate with its own tariffs which would strike at the heart of American popular culture.

"We regret that. We would much rather move together in partnership", he said. This Russia-bashing has to be brought to an end'.

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But the threats did little to move Canada or Mexico to swallow unappealing US demands in NAFTA talks, and Brussels repeatedly said it wouldn't negotiate at the point of a gun.

"Unilateral responses and threats over trade war will solve nothing of the serious imbalances in world trade". "Only they have to decide whether they want to enter a trade war with their closest partners".

Trump's move to broaden tariffs on metal imports follows news earlier this week that the Trump administration is preparing to hit China with tariffs on $50 billion worth of mainly high-tech imports as initially planned.

Brussels previously threatened to slap tariffs on U.S. products including bourbon, motorcycles and blue jeans.

Europe felt that "legitimate exports" from the European Union to us markets did not justify tariffs, David O'Sullivan the EU's Ambassador to the USA told a discussion held by the Wilson Centre in Washington DC on Wednesday. He promised to add Canadian tariffs on a number of American goods.

But he had granted an exemption to the EU, Canada and Mexico. This will force them to cut jobs, economists and industry officials say.

"We will now see damage not only to the United Kingdom steel sector, but also the USA economy".

"Many specialty steel and aluminum materials imported by motor vehicle suppliers are used by hundreds of vehicle parts manufacturers operating in an integrated, complex global supply chain".

He says the government doesn't want to appear too critical of Trump in light of Brexit but the United Kingdom is still hiding behind the bloc in the hope of curbing the measures. Officials noted this is the strongest trade action Canada has taken in the post-war era. He said he's still planning to make a trip to Beijing this weekend even after the USA announced it would slap tariffs on $50 billion in Chinese goods, jeopardizing a fragile agreement to reduce the US trade deficit with China. Thursday's tariff announcement by the White House will further complicate agreeing on a G-7 agenda.

"Global trade is not a gunfight at the OK Corral", France's finance minister quipped after meeting US Commerce Secretary Wilbur Ross, as reported by PTI.

"The EU does not pose a national security threat to the US and therefore should not be the target of such measures". French president Emmanuel Macron likening the threats to having a "gun pointed at our head".