US Tariffs "Unjustified", UK PM Theresa May Tells Donald Trump

US Tariffs

US Tariffs "Unjustified", UK PM Theresa May Tells Donald Trump

"Mexico has the right to take measures with equivalent commercial effects", the economy ministry said in a statement explaining the tariffs.

Both the European Union and Canada have already opened legal challenges to the United States at the WTO, the Geneva-based arbitrator of global trade disputes that is loathed by President Donald Trump who on Friday imposed duties of 25 per cent for steel and 10 per cent for aluminium against his allies.

The peso sank to its weakest in more than a year earlier Tuesday on concern the USA may leave the North America Free Trade Agreement and try to negotiate two separate free trade deals with Mexico and Canada.

And shortly after the USA tariffs took effect last week, Europe's top trade commissioner said the European Union also will now consider "rebalancing measures".

The U.S. tariffs have been condemned by nations across the world, with Canada last week announcing it will impose tariffs on as much as C$16.6 billion ($12.8 billion) of U.S. steel, aluminum and other products from July 1.

"These unilateral tariffs, imposed under a false pretext of safeguarding USA national security, are inconsistent with the United States' worldwide trade obligations and WTO rules", Canada's Foreign Minister Chrystia Freeland said Friday after her country filed its WTO complaint.

Canadian Prime Minister Justin Trudeau said the assertion that the tariffs are a response to national security threats is "insulting and unacceptable".

The result has been a boon for Texas and the United States, as well as Mexico and Canada. Although Washington wants its deficit with China to average $15 billion monthly, it will likely also hover around last month's $26 billion.

The initiative, which would be implemented if the Trump administration calls off its tariff threats, came as part of negotiations this past weekend in Beijing, the report said.

The US and China have held trade talks to deescalate tensions between the two sides.

The US is Mexico's largest trading partner, receiving about 80 per cent of the country's exports.

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