Canada hits United States with billions in retaliatory tariffs in steel row

U.S. Commerce Secretary Wilbur Ross leaves his hotel in Beijing

U.S. Commerce Secretary Wilbur Ross leaves his hotel in Beijing

He was speaking a day after International Trade Secretary Liam Fox refused to rule out a trade war after the US imposed tariffs of 25 percent on steel and 10 percent on aluminum imported from the EU, Canada and Mexico.

"It's more than highly unusual".

Ottawa will also challenge the USA measures under NAFTA and at the WTO, said Trudeau.

"Our basic objectives with China are to sell them more product, get less in the way of tariff and non-tariff trade barriers, and then ultimately, and most importantly. deal with the problems of intellectual property, technology transfers, the whole litany of high-tech things", he told CNBC.

The Canadian tariffs, which Foreign Minister Chrystia Freeland said are proportional to the United States duties, will be applied to USA steel and aluminum as well as consumer products from July 1. European leaders also vowed to proceed with a complaint to the World Trade Organization.

She added: "We have no intention to escalate this, the door for dialogue is always open.the ball is in (the US's) court".

Mexico says it will answer tariffs on steel and aluminum announced by the Trump administration with duties of its own on a variety of US products, including pork bellies, apples, grapes, cheeses and flat steel among other things.

"The American administration has made a decision today that we deplore, and obviously is going to lead to retaliatory measures, as it must", Prime Minister Justin Trudeau said at a news conference with Freeland.

Talks have been "taking longer than we had hoped", Commerce Secretary Wilbur Ross said as he announced the tariffs on Nafta partners.

Modern Age editor, Daniel McCarthy backed Donald Trump's decision on BBC Newsnight saying the USA "will win" a trans-Atlantic trade war with the European Union.

Pork exporter Iowa, where incumbent Republican Rod Blum faces a Democratic challenge, is an example of a place Mexico's reaction could hurt.

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It's a targeted weapon aimed at achieving one of Trump's key political aims: to get American companies and American people, to buy American, make American, and hire American.

The United States negotiated voluntary export limits with several other friendly nations, including South Korea, Argentina, Australia and Brazil.

Mr Ross said negotiations with Mexico, Canada and the European Union can continue even once the tariffs are in place.

He and other analysts say the tariffs put further trade-pact negotiations against a backdrop of ill-will and a widespread trade skirmish, none of which bodes well for a resolution to the Nafta stalemate.

The administration's actions drew fire from Europe, Canada and Mexico and promises to quickly retaliate against US exports. The EU move could heighten pressure on Washington. He estimated the US tariffs would affect $4 billion in trade between the two countries.

The Mexican economy ministry also related the country's displeasure with the new crackdown: "Mexico profoundly regrets and condemns the decision by the United States to impose these tariffs on imports of steel and aluminium from Mexico".

Trump's announcement lifted American steel and aluminum stocks because those companies stand to benefit from penalties against their foreign competitors. "We will defend the UK's interests robustly". David O'Sullivan, the EU's ambassador in Washington, said the retaliation will probably be announced in late June.

President Emmanuel Macron has couched Trump's tariffs as a "nationalist retrenchment" reminiscent of Europe in the 1930s.

"This is the strongest trade action Canada has taken in the post-war era", Freeland said. The White House said in a statement that the steel and aluminum tariffs have already had a positive effects on workers and jobs.

Section 232 of the Trade Expansion Act of 1962 allows tariffs to be placed on imports to protect national security.