USA slaps tariffs on European Union steel and aluminium

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Thursday's tariff announcement by the White House will further complicate agreeing on a G-7 agenda.

The NAFTA talks were one factor in the administration's decision to grant exemptions to Canada and Mexico from the steel and aluminum tariffs.

The United States' launch of a tariff probe into vehicle imports last week was also seen as a move created to pressure its NAFTA partners in negotiations that have been contentious on issues including rules of origin and wages as they apply to the automotive sector.

'We absolutely do not rule out counter-measures.

"Tariffs are not going to create more jobs because you can't bring manufacturing back to the United States", Hudson told show hosts Eugene Puryear and Sean Blackmon.

Macroeconomic Advisers, a research firm focused on the USA economy, reported Wednesday that the United States trade deficit in goods was "much narrower than expected", implying "substantially more" U.S. exports in the second quarter.

The decision came hours before temporary exemptions were due to elapse at 12:01 a.m.

The UK said: "We will continue to work closely with the European Union and US Administration to achieve a permanent exemption, and to ensure that UK workers are protected and safeguarded". "It's unprecedented to have gone after so many U.S. allies and trading partners, alienating them, and forcing them to retaliate", said economist Douglas Irwin, author of a history of USA trade policy since 1763.

The EU said it would take action through the World Trade Organisation, setting in motion a process aimed at settling the dispute over the penalties.

Mexican Economy Minister Ildefonso Guajardo said in April the country will "have to react if any measure is imposed".

Ross himself heads to Beijing on Friday where he will attempt to get firm deals to export more USA goods in a bid to cut America's $375 billion trade deficit with China.

Ross said talks with Canada and Mexico over the North American Free Trade Agreement (Nafta) are "taking longer than we had hoped" and that negotiations with Europe have "made some progress" but not enough to merit an exemption.

China has already imposed duties on $3 billion worth of U.S. goods in retaliation for the steel and aluminium tariffs. Products could include Harley-Davidson motorcycles, Levi jeans and bourbon whiskey. European Union exports potentially subject to United States duties are worth 6.4 billion euros ($7.5 billion). He promised to add Canadian tariffs on a number of American goods.

"We talked about how hard this was going to be in terms of a turning point in the Canada-U.S. relationship", Trudeau noted. Gareth Stace, of manufacturer UK Steel, said: 'President Trump had already loaded the gun and we now know that the USA has unfortunately fired it, potentially starting a damaging trade war. But import taxes remain on steel and aluminum imports from Japan. The S&P 500 Steel index was up 0.5 per cent.

"I don't know if it's officially a "war" yet, but it's getting to be a pretty intense trade skirmish", Lester told Business Insider.

The EU said it would retaliate with tariffs on products like United States bourbon.

Our North American allies have been engaged in (what they had believed to be) earnest, productive discussions with the USA on reforming NAFTA, and had thus assumed that Washington would not unilaterally impose tariffs on them - let alone that it would so without providing any warning.

"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 US accounts for 90 percent of Canada's steel exports, however. There's potential "flexibility" in the future because the president has the power to increase or cut tariffs, remove them, or enact quotas, he said.

Not even the US's closest allies can avoid being caught in President Donald Trump's escalating trade battles.



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