European leaders plan to hit back against Trump's steel and aluminum tariffs

European leaders plan to hit back against Trump's steel and aluminum tariffs

European leaders plan to hit back against Trump's steel and aluminum tariffs

US Treasury Secretary Steven Mnuchin is due to hold meetings with his European counterparts to discuss President Donald Trump's confrontational trade agenda, officials said.

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.

Mr Stace said U.S. tariffs would be "purely protectionist".

Ross also said the European Union was unwilling to speak about renegotiating trade deals until the Trump administration threatened them with tariffs.

Despite weeks of talks with his EU counterparts, Ross said the United States was not willing to meet the European demand that the EU be "exempted permanently and unconditionally from these tariffs".

"Mexico reiterates its openness to constructive dialogue with the United States, its support for the global commerce system and its rejection of unilateral protectionist measures", it said. Mexico said it would penalize US imports including pork bellies, apples, grapes, cheeses and flat steel.

Nafta talks continue, with a deal needed probably within days to have any hope of passing the current USA congress and with Mexican elections one month away.

Meanwhile, negotiations with Canada and Mexico to revise the North American Free Trade Agreement were "taking longer than we had hoped" and there was no "precise date" for concluding them, so their exemption also would be removed, Ross told reporters.

Trump announced worldwide steel and aluminum tariffs in March but granted exemptions to some major trading partners.

Alden said that the increased trade tensions will eventually catch up to the market as more and more tariff actions are undertaken by Trump.

Last week, the USA administration launched a national security-based investigation that could result in stinging tariffs on the autos the U.S. imports annually, just as it has for the smaller aluminium and steel industries. The president first unveiled these trade measures in early March, but had initially provided exemptions to the European Union and America's northern and southern neighbors.

The announcement was made by Commerce Secretary Wilbur Ross.

The White House is expected to confirm today that it will impose the tariffs after failing to win concessions from... "Both Canada and Mexico will be put off by these tariffs, and may be less likely to agree to anything, for fear of looking like they are caving in to Trump's bullying".

Ross is scheduled to go to China this weekend for a third round of negotiations.

That announcement came about a month after the Canada Border Services Agency was granted extra powers to identify businesses that try to dodge import duties and ship cheap foreign steel and aluminum through the Canadian market.

Simon Lester, a trade policy analyst with Cato Institute, also suggested that the president's escalation is pushing the U.S. into risky territory.

'But they can also increase costs more broadly for US manufacturers who cannot source all their needs locally and have to import the materials.

"There are still a lot of debates going on in Europe", said Guntram Wolff, director of the Bruegel Institute, a Brussels-based think tank.

Related news