How Donald Trump’s trade war will affect the United Kingdom economy

Trump's push to revamp NAFTA stokes 'unease' in Texas as negotiations drag on

Trump's push to revamp NAFTA stokes 'unease' in Texas as negotiations drag on

Trudeau's comments came after President Donald Trump enacted the most severe economic penalties he has imposed to date against USA allies, establishing tariffs on steel and aluminum imports from Canada, Mexico and the European Union.

The BBC says he has "justified the tariffs by arguing that U.S. steel and aluminium producers are vital to national security and threatened by a global supply glut".

Mexico, the European Union and Canada immediately announced plans to retaliate with their own tariffs against American products. It has demanded permanent exemption from any new tariffs.

The tariffs, announced by US Commerce Secretary Wilbur Ross in a telephone briefing on Thursday, ended months of uncertainty about potential exemptions and suggested a hardening of the Trump administration's approach to trade negotiations. Those negotiations had a Friday deadline. But the taxes will raise prices for downstream companies that use those materials in their products.

German MEP Bernd Lange, who chairs the European Union's global trade committee, has said the tariffs are "illegal" and insisted the EU would "make some countermeasures, no doubt about".

The next question is whether Trump, enraged that anybody would dare place new tariffs on American goods, will retaliate further.

It calls for Trudeau government to impose retaliatory measures and ensure that steel and aluminum are not dumped into Canada from third countries. They report a really high surplus on trade with us.

On Wednesday, the federal government said it will take additional steps to prevent foreign steel and aluminum from being dumped into the North American market.

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Ross shrugged off questions about the USA facing possible retaliation, or whether the move would negatively affect the G7 meeting.

"He's created a trade war that is going to cause a massive problem for steel stockholders, steel producers throughout Europe". Stock prices slumped amid fears of a trade war, with the Dow Jones industrial average falling almost 252 points, or 1 percent, to 24,415.84. The list of US exports that European Union would impose additional tax on has already been decided, and notified to WTO. Both the European Union and Canada are planning tariff retaliation on the basis that America's actions are a "safeguard" action; in such cases the rules allow for near-immediate compensation. The EU had previously released a list of USA products that would be subject to tariffs in the event the metal restrictions went into effect.

The European Commission, which is negotiating on behalf of the United Kingdom, has been in intensive negotiations with the USA in a bid to avoid such a scenario.

Canada's planned retaliatory measures will take effect July 1 and stay in place until the USA backs down.

"Let me be clear", Prime Minister Justin Trudeau said. "From the beaches of Normandy to the mountains of Afghanistan, we have fought and died together", Trudeau said in a Thursday speech.

Ross said NAFTA negotiations can continue even if retaliatory measures are taken. "That's why we consult", Freeland said Thursday.

Throughout his presidential campaign, Trump accused China of dumping steel on the U.S. market - and said previous presidents had made a series of "bad deals" to promote free trade.

Trump hasn't clearly articulated what he wants from Europe, and he expects Canada and Mexico to adopt labor practices that would basically shift more production to the United States. Mexico was the third largest, behind South Korea. Canada announced plans to slap tariffs on $12.8 billion worth of USA products, ranging from steel to yogurt and toilet paper.

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