President Trump plans to impose steel, aluminum tariffs on the European Union

President Trump plans to impose steel, aluminum tariffs on the European Union

President Trump plans to impose steel, aluminum tariffs on the European Union

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.

The Trump administration announced Thursday it will impose tariffs on steel and aluminum imports from Europe, Mexico and Canada after failing to win concessions from the American allies.

Trump gave temporary exemptions to the European Union and five other trading partners, giving them a chance to hammer out agreements with the U.S.

Tariffs of 25 percent on steel and 10 percent on aluminum will take effect at midnight Thursday on imports from the three USA trading partners. Canada has pledged to retaliate in the past.

"We will have to see what's their reaction", he said.

The United States on Thursday said it was pushing ahead with tariffs on aluminum and steel imports from Canada, Mexico and the European Union, setting the stage for a possible trade war with some of America's top allies.

The two sources briefed on the matter said the decision would land before a Friday expiration deadline for exemptions to the planned tariffs.

The European Commission, which coordinates trade policy for the 28 EU members, has said the bloc should be permanently exempted from the tariffs since it was not the cause of overcapacity in steel and aluminum.

Ross told a conference call with media this morning that he is looking forward to continuing negotiations.

While Donald Trump's trade war with China simmers, he's about to turn up the heat in Europe.

"We take the view that without a strong economy, you can't have strong national security", he said. "It's not that we can't talk just because there's tariffs". And last week, he ordered an investigation into auto imports to the United States that could lead to 25-per-cent tariffs on cars and trucks, which would disproportionately hit Canada; about 80 per cent of Canadian-made vehicles are for the US market.

"Global trade is not a gunfight at the OK Corral", France's finance minister quipped after meeting U.S. Commerce Secretary Wilbur Ross.

Argentina, Brazil Australia have reached agreements that will allow those exemptions from the tariffs for now.

Two sources said Canada has prepared detailed options for retaliation, including an investigation into steel dumping from several countries, including the United States, with the possibility of imposing its own tariffs.

Trump's decision would come either before markets opened or after they closed, Ross said.

Last week, Trump launched yet another national security investigation into vehicle and truck imports that could lead to even more tariffs.

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