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Forget China: US jumps headlong into trade war with allies

Forget China: US jumps headlong into trade war with allies

The Dow Jones Industrial Average lost 1 percent and the S&P 500 shed 0.69 percent.

The measures already announced would "take effect on July 1, 2018 and will remain in place until the USA eliminates its trade-restrictive measures against Canada".

Trump's latest move amounts to "blackmail" in the NAFTA renegotiation, but it doesn't kill chances of carving out a deal, says a veteran of Canada's free trade battles.

That's the only way forward, now that Trump has triggered a sprawling trade war by imposing import duties of 25 per cent on steel and 10 per cent on aluminum from Canada, Mexico and Europe, multiple sources familiar with Ottawa's position told The Canadian Press.

Chrystia Freeland, the minister of foreign affairs for Canada, announced the specifics of the retaliatory tariffs, which are imposed on USA exports totaling to 16.6 billion Canadian dollars (over $12.8 billion), "representing the value of 2017 Canadian exports affected by the us measures".

Trump shot back hours later in a statement, saying the days of the US being taken advantage of in trade deals "are over". "Both China and the European Union should implement unreasonable concessions toward the U.S. as Trump is unwilling to cooperate with the world and would rather use trade-related siege tactics to conquer foreign nations", it said.

"We lose a lot of money with Canada and we lose a fortune with Mexico".

Fox - a Brexiteer who has led calls for Britain to prioritise a trade deal with the USA after Britain has left the European Union - described the tariffs as a "patently absurd" move, and said the United Kingdom government was considering counter-measures.

The Mexican peso dropped about 1 percent, hitting its weakest level against the dollar in almost 15 months, and the Canadian dollar shed about 0.6 percent. It did not announce details, but the bloc has previously threatened 25% tariffs on U.S. products such as motorcycles, denim, cigarettes, cranberry juice and peanut butter.

Trump hosting rally in Tennessee today
It's hard to find a United States lawmaker more loyal to AT&T and Comcast than Tennessee Representative Marsha Blackburn. Bredesen was governor of Tennessee from 2003 to 2011 and was previously the mayor of Nashville .

EU members have so far given broad support to a European Commission plan to set duties on 2.8 billion euros (£2.4 billion) of US exports.

"It is, therefore, extremely disappointing that the United States is pressing ahead with tariffs on European Union steel and aluminium imports".

"They chose not to offer a reasonable quota, and we had to put the tariffs on", he said. U.S. Chamber of Commerce President Tom Donohue warned in a letter to the body's board that current trade policies could threaten economic progress and cause the loss of more than 2 million jobs, mostly in states that voted for Trump.

"I had to highlight that there was no possibility of any Canadian prime minister signing a NAFTA deal that included a five-year sunset clause, and obviously the visit didn't happen", Trudeau said Thursday, The Post reported. It has demanded permanent exemption from any new tariffs.

The tariffs are aimed at allowing the USA steel and aluminum industries to increase their capacity utilization rates above 80 percent for the first time in years. Shares of Century aluminium Co jumped 3.3 percent but Alcoa Corp shed 0.9 percent.

"What we have is about 15 counties in the aluminum space and about 20 in the steel space who basically are sending a flood of imports into this country", he said.

Roy Rickhuss, general secretary of Community, the steelworkers' union, said: "The problems of steel dumping will not be solved by unfair tariffs and steelworkers in the United Kingdom and U.S. must not fall into the trap of believing rhetoric from the likes of Donald Trump". Even setting aside how specious these national security claims are in the cases of steel and aluminum, it is hard to imagine a scenario in which the United States does not have access to steel imports from Canada, Mexico and the European Union.

Mr Jones, who is in Washington meeting business leaders and politicians, said: "I want to see fewer obstacles to trade, more cooperation, more internationalism, to help our economies continue to grow".

"These are proportionate measures to show that we will not be cowed, we will not be bullied by the President", Gardiner told the Today programme on Friday morning. After ten years nursing the world's markets back to health from the financial crash of 2008, "a trade war is the last thing the global economy needs right now", Lynn says.