United States to slap tariffs on European Union steel and aluminium

United States to slap tariffs on European Union steel and aluminium

United States to slap tariffs on European Union steel and aluminium

US Commerce Secretary Wilbur Ross told reporters in a telephone briefing that Washington would proceed with plans for a 25 percent tariff on steel and a 10 percent tariff on aluminum imports, although he said the door was still open for negotiations without specifying what measures could be taken. President Donald Trump had announced the tariffs in March, citing national security concerns.

"Over the past months we have continuously engaged with the USA at all possible levels to jointly address the problem of overcapacity in the steel sector", says European Commission President Jean-Claude Juncker. "This is protectionism, pure and simple", Juncker said. Likely targets are thought to be US exports of jeans, motorcycles and bourbon.

US Treasury Secretary Steven Mnuchin is due to hold meetings with his European counterparts to discuss President Donald Trump's confrontational trade agenda, officials said.

Fears of a global trade war are mounting as the Trump administration also considers tariffs on US auto imports and duties on $50 billion in Chinese goods. Nucor Corp., the biggest USA steel producer, rose 0.6 per cent to US$64.49.

Ross said he's looking forward to "continued negotiations" with Canada, Mexico and the European Union "because there are other issues" that need to be resolved. "And every complaint filed with the WTO is seen as a protectionist action rather than an attempt to make sure trade rules are being respected", he said.

Mexico has also responded, promising to slap tariffs on US products including pork bellies, grapes, apples, and flat steel.

Similarly, EU Trade Commissioner Cecilia Malmstrom and Japanese Economy, Trade and Industry Minister Hiroshige Seko put out a joint statement on U.S. tariff efforts, saying "This would cause serious turmoil in the global market and could lead to the demise of the multilateral trading system based on WTO rules".

The countermeasures will take effect on July 1. Tariffs will remain on imports from Japan.

For the past couple of months, it has looked like a trade war might be avoided, Greg Valliere, chief global strategist at Horizon Investments, wrote in a note distributed early Thursday morning.

Amid reports of faltering negotiations despite round-the-clock efforts, Foreign Affairs Minister Chrystia Freeland has pledged to retaliate if the US slaps levies on Canadian producers. "We will respond appropriately".

United Kingdom exports of aluminium to the USA are tiny, but in March the UK's Aluminium Federation said it feared the 10% tariffs.

"This will only lead to the victory of those who want less growth, those who don't think we can develop our economies across the world".

Finance Minister Bill Morneau said in a statement late Wednesday that Canada has expanded the scope of its country of origin marking regime for steel and aluminum products to better determine where they come from. But Daniel Caspary, the head of her center-right party's faction in the European Parliament, did little to hide his displeasure, writing on Twitter that Trump's move "will hurt the USA, the EU and the transatlantic relationship". But on Wednesday night, Canadian and Mexican officials learned of the impending tariffs from news reports, according to one US industry official who spoke withPolitico.

Even some Trump allies in Congress said the trade moves were misguided.

"Mexico deeply regrets and condemns the decision of the United States to impose these tariffs on steel and aluminum imports. under the criterion of national security", the government said. Orrin Hatch, R-Utah.

Worries about a United States trade war with the European Union weighed on Wall Street stocks at the open, but shares of USA steel and aluminum makers were up strongly. "They're critical for national security".

Canadian Prime Minister Justin Trudeau took aim at President TrumpDonald John TrumpKoch brothers company tweets support for Kim Kardashian after Trump meeting Romney reveals he wrote in wife's name for president in 2016 Pompeo has dinner with top North Korean official in NY: report MORE on Thursday over his implementation of steel and aluminum tariffs against Canada and other nations.

She says most companies have some breathing room because of hedging contracts that protect them from wild price swings. "It's totally unacceptable that a country is imposing unilateral measures when it comes to world trade". In his public comments on the tariffs, however, the president rarely references this rationale, focusing instead on an economic argument for taking radical measures to reduce America's trade deficit.

"These solutions might bring symbolic satisfaction in the short term", Macron said.

This is dumb. Europe, Canada, and Mexico are not China, and you don't treat allies the same way you treat opponents.

Trump invoked a 1962 trade law to erect protections for USA steel and aluminium producers on national security grounds, amid a worldwide glut of both metals that is largely blamed on excess production in China.

Ross criticized the European Union for its tough negotiating position. But German Economy Minister Peter Altmaier insisted the Europeans were ready to negotiate special trade arrangements, notably for liquefied natural gas and industrial goods, including cars.

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