USA to impose tariffs on European Union steel, aluminium at midnight

Posted June 01, 2018

Prime Minister Justin Trudeau slammed U.S. President Donald Trump's decision to slap tariffs on Canadian steel, calling the move "totally unacceptable".

"Canada will impose tariffs against imports of steel, aluminum, and other products from the United States - we are imposing dollar for dollar tariffs for every dollar levied against Canadians by the U.S.", said Trudeau, adding that the countermeasures will only apply to goods originating from the USA and will take effect on July 1, and will remain in place until the U.S. eliminates its trade-restrictive measures against Canada.

Effective midnight, Canadian steel transported over the U.S border will face a 25 per cent tariff and aluminum will face a 10 per cent tariff. "This is protectionism, pure and simple", Juncker said.

Outside the beer industry, multiple studies estimated that the steel and aluminum tariffs would result in a net loss of United States jobs and hurt the domestic economy.

"This is the strongest trade action Canada has taken in the post-war era", Freeland said.

While the imposing of the tariffs is perceived in the USA as a mean of "negotiating" with other counties, those targeted see them as a threat and effectively a declaration of trade war.

The White House has sought to include a "sunset" provision in the NAFTA renegotiation for months, but Canada and Mexico have always been cool to the idea, saying it would remove any economic security and certainty for businesses trying to comply with trade rules.

"What they can do, we are able to do", Juncker said.

The U.S.is still renegotiating the North American Free Trade Agreement (NAFTA) with Mexico and Canada.

Sky News US correspondent Mark Austin said: "It's not a good atmosphere for any sort of negotiations about a separate trade deal between Britain and the US in a post-Brexit world".

In this case, that means a planned European Union complaint on Friday to the World Trade Organization and the imposition of a retaliatory tariff as soon as June 20 on 2.8 billion euros (US$3.3 billion) of USA goods imported into the bloc including Harley-Davidson Inc. motorcycles, Levi Strauss & Co. jeans and bourbon whiskey.

Commerce Secretary Wilbur Ross said Thursday that the U.S.

The White House defended the move by invoking national security as it stated excessive levels of aluminum and steel imports threatened to impair the security of the United States.

The EU is expected to respond with tariffs on a little more than $3 billion worth of American goods including motorcycles, bourbon, and blue jeans.

But, speaking on CNBC, Mr Ross said any retaliatory measures against the U.S. would be "unlikely to have much effect" on the U.S. economy. "This month he called it a "horrible" disaster for the US economy".

Gareth Stace, director of the trade association UK Steel, said: "This is a bad day for the steel sector, for worldwide relations and for free trade".

"We will also impose re-balancing measures and take any necessary steps to protect the European Union market from trade diversion caused by these United States restrictions".

It's a bad day for world trade. And Arkansas-based Big River Steel is considering a $1.5 billion facility expansion at an existing manufacturing plant in its home state of Arkansas, according to reports.