Trump Takes Aim at Canada as US Protest His Tariffs
Jun 03, 2018, 20:36
While many countries share US frustration over Chinese trade and economic practices, critics of USA policy under President Donald Trump have warned that Washington risks alienating the European Union, Canada and Mexico with 25 percent tariffs on steel and 10 percent on aluminum.
Fears of a global trade war are overshadowing the G7 talks in the Canadian resort town of Whistler, as Washington's allies vow to push back against the U.S. decision on tariffs.
America's "playing a unsafe game" which risks harming the EU's economic recovery.
These include products the European Union may subject to tariffs from rice to orange juice, cosmetics, motorcycles, motor boats to stainless steel sinks.
French President Emmanuel Macron said in a statement that he told Trump in a telephone call that the tariffs on European, Mexican and Canadian goods are illegal and a "mistake".
The EU has launched its first counteroffensive against Washington's punishing steel and aluminium tariffs while the United States began meetings in Canada with outraged finance ministers from its top trading partners.
The United States had sought use the tariff threat as cudgel to win concessions from Canada and Mexico in talks to renegotiate the North American Free Trade Agreement.
According to, the current trade trend is destroying the United States steel and aluminum sectors.
Ms Malmstrom said a final decision on what products would be hit with tariffs had not yet been made, but added that they would be from an already published list which includes the likes of Levi's jeans, bourbon whiskey, cranberries and peanut butter. The issue about tariffs being slapped on the European Union creates a problem.
UK's Prime Minister, Theresa May has slammed Donald Trump, for his decision to impose tariffs on steel and aluminium producers, a decision that is pushing European Union to the brink of a trade war with the US.
He continued: "The reason I don't know is because he's talked about the fact of this, he's anxious about trade surpluses, trade deficits around the world".
Canada, the largest supplier of steel to the United States, will impose tariffs covering C$16.6 billion ($12.8 billion) on U.S. imports, including whiskey, orange juice, steel, aluminium and other products. The metal tariffs will come into force at midnight (04:00 GMT) on Friday.
The EU said it has opened legal challenges against China and the United States at the World Trade Organization on Friday as punishing trade tariffs announced by Washington raised the prospects of a global trade war.
Justifying US steel tariffs based on national security concerns is "grotesque", according to Germany's steel industry association.
"But we see no sign of that in this action today by the USA administration", Trudeau said. Canada unveiled a package of counter-tariffs on USA imports valued at Can$16.6 billion (US$12.8 billion).
President Donald Trump's chief economic adviser is brushing off concerns over escalating trade disputes with a host of USA allies as nothing but a "family quarrel". "The US economy will suffer as much as any other economy". The official said he believes there will not be a long-term impact on relations with affected countries and they "will get over this in due course".
The EU earlier threatened to counterpunch by targeting USA products, including Kentucky bourbon, blue jeans and motorcycles.
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