US slaps steel and aluminium tariffs on EU, Canada and Mexico from Friday
Washington will implement steel and aluminum tariffs on metals imports from the European Union, Canada and Mexico from Friday, Commerce Secretary Wilbur Ross said.
Ross said a 25% steel tariff and 10% aluminium tariff will be imposed at midnight on Thursday.
"We look forward to continued negotiations, both with Canada and Mexico on the one hand, and with the European Commission on the other hand, because there are other issues that we also need to get resolved," Ross said, adding that negotiations with Europe have “made some progress” but not enough to merit an exemption.
Overnight he had warned the EU not to retaliate since it could lead to a possible escalation as seen with China and called out trade negotiators for not being open to talks just because there are new tariffs in place. The EU said they were open to discussions but would not negotiate under threat.
The EU confirmed on Thursday that it will retaliate, with the bloc having suggested a response could be made by targeting American products such as motorcycles, jeans and bourbon.
“We will now trigger a dispute settlement case at the WTO, since these U.S. measures clearly go against agreed international rules. We will also impose rebalancing measures and take any necessary steps to protect the EU market from trade diversion caused by these US restrictions,” said European Commissioner for Trade Cecilia Malmström.
He said on Thursday that discussions with Canada and Mexico over the North American Free Trade Agreement were “taking longer than we had hoped”.
Responding to the news, British business lobby group the CBI said measures were "deeply concerning for firms in the UK, for close trading partners and across supply chains".
"These tariffs could lead to a protectionist domino effect, damaging firms, employees and consumers in the USA, UK and many other trading partners," said CBI international director Ben Digby, pointing out that the UK is the largest foreign investor in America, and British companies support over a million jobs in the States.
“We hope that the USA will swiftly reconsider its decision, and we will be pressing home the importance of our transatlantic relationship with our counterparts and government figures in Washington, London and Brussels in order to protect the free and fair trade that is the key to our economic future.”