Trudeau reaching out to steel, aluminium producers during 'ridiculous situation'

Trudeau reaching out to steel, aluminium producers during 'ridiculous situation'

After failing to win concessions from the European Union, tariffs are likely to be imposed on European steel and aluminium imports by the Donald Trump administration, reported Reuters.

Emmanuel Macron spoke to Donald Trump on the phone on Thursday evening and called the American decision "illegal", the Elysee Palace said.

Boeing was the biggest drag on the Dow Jones Industrial Average, which was down 0.95 per cent.

Commerce Secretary Wilbur Ross said the tariffs - 25 per cent on imported steel and 10 per cent on aluminium - would take effect on Friday (local time).

The United States, Canada and Mexico have been renegotiating the North American Free Trade Agreement, which governs trade between the three countries.

Earlier Thursday, Trudeau announced retaliatory tariffs in response to USA duties on steel and aluminum made in Canada, Mexico and European Union nations.

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

According to their justification, imports can reduce America's domestic production capacity and the country could find itself in a "situation where the United States would be unable to meet demand for national defense and critical infrastructure in a national emergency". She dismissed the argument that the tariffs were needed for us national security reasons.

Mexico said it would tax a number of USA imports, including pork bellies, apples, grapes, cheeses and flat steel.

The S&P 500's packaged foods and meats industry sub-index fell 2 percent, with shares of meat producer Tyson Foods Inc falling 3.9 percent, Campbell Soup Co 2.6 percent and spice maker McCormick & Co Inc 2.9 percent. At its low, the peso was at its weakest against the dollar in almost 15 months.

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The European Union is weighing up slapping new rates on products from Harley-Davidsons, Levi jeans and bourbon whiskey - targeting specific products from states represented by influential Republicans in the Congress and Senate.

Jean-Claude Juncker, the president of the European Commission, called the US decision "protectionism, pure and simple". European Union exports potentially subject to USA duties are worth 6.4 billion euros ($7.5 billion). Last week, The Trump administration announced an investigation into whether automobile imports are hurting U.S. national security, laying the groundwork for another trade fight.

"If the Government had any doubt as to how 'special" our relationship with the USA is to President Trump then these tariffs make it clear that even close allies will not be spared from his America First policies. He estimated the USA tariffs would affect $4 billion in trade between the two countries.

The U.S. tariffs are expected to be particularly injurious to the European steel sector, only just recovering from a protracted crisis.

"We take the view that without a strong economy, you can not have strong national security", Ross said Thursday.

Automakers responded negatively to the Trump administration's first announcement of the duties in March and on Thursday the trade group that represents foreign-brand vehicle dealers echoed that sentiment.

Canadian Prime Minister Justin Trudeau has lashed the United States for lumping them with the steel tariff.

The head of the World Trade Organization is expressing "very real concern" about rising trade tensions and the risk of escalation.

Canada announced plans to slap tariffs on 12.8 billion dollars-worth (£9.65 billion) of U.S. products, ranging from steel to yogurt and toilet paper.

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