Published: Thu, May 31, 2018
Money | By Hannah Jacobs

Trump to impose steel and aluminum tariffs on Canada as of midnight

Trump to impose steel and aluminum tariffs on Canada as of midnight

The latest 30-day exemption is set to expire on Friday.

Liam Fox questioned the U.S. decision to 25% tax on steel and a 10% tax on aluminium from the EU, Mexico and Canada.

Trade tensions between the European Union and the United States ran high Thursday as the clock was ticking for USA steel and aluminium tariffs against European producers to kick in.

"Let me be clear: These tariffs are totally unacceptable", Trudeau said.

European Commission president Jean-Claude Juncker, seemingly flippantly, identified Harley-Davidson motorcycles, Kentucky bourbon and Levi's jeans in particular in a German TV interview.

"Unilateral responses and threats over trade war will solve nothing of the serious imbalances in world trade".

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.

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

The tariffs, which have prompted several challenges at the WTO, are aimed at allowing the United States steel and aluminum industries to increase their capacity utilization rates above 80 percent for the first time in years. The International Monetary Fund has warned that a wave of protectionist forces are the biggest risk to the global economic outlook.

"I think that we've all had just about enough of Donald Trump...." And so the administration chose to lift the exemption from the tariffs for those countries. U.S. Steel Corp., AK Steel Holding Corp. and Steel Dynamics Inc. all gained in NY.

"We look forward to continued negotiations with Canada and Mexico on one hand and with the European Commission on the other hand as there are other issues we need to get resolved", the commerce secretary said. 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.

US and European officials held last-ditch talks in Paris to try to reach a deal, though hopes are low and fears of a trade war are mounting.

There had been a temporary exemption granted on the 25pc levy on steel and 10pc on aluminum for the European Union and others.

A key theme of Donald Trump's election campaign in 2016 was that American jobs were being lost as a result of unfair global trade.

The Trump administration also has threatened to impose tariffs on vehicle imports, is engaged in negotiations with China to reduce America's yawning trade deficit and has said it will punish Beijing for stealing its technology by imposing tariffs on $50 billion (37.6 billion pounds) of imports from China.

Germany has perhaps the most to lose among European Union nations if the spat escalates into a full-blown trade war. And even that is subject to change as the Trump administration continues to dangle relief on steel and aluminum tariffs in exchange for other concessions. "Tariffs on steel and aluminum imports are a tax hike on Americans and will have damaging consequences for consumers, manufacturers and workers", said Sen.

Meanwhile, the commerce secretary said he plans to go to China for trade talks on Friday, another country with which the US has developed an extremely tense relationship over trade differences under the Trump administration.

But in the case of Canada and Mexico, he says the decision was based on making progress in the ongoing North American Free Trade Agreement talks, and there is no resolution in sight.

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