U.S. allies hit back at Washington’s steel, aluminium tariffs
Canada and Mexico retaliated on Thursday after Washington imposed tariffs on steel and aluminium imports while the European Union had its own reprisals ready to go, reviving investor fears of a global trade war.
Germany’s Economy Minister said early on Friday the EU might look to coordinate its response with Canada and Mexico.
The tariffs, announced by Commerce Secretary Wilbur Ross, ended months of uncertainty about potential exemptions and suggested a hardening of the U.S. approach to trade negotiations.
The measures, touted by President Donald Trump in March, drew condemnation from Republican lawmakers and the country’s main business lobbying group and sent a chill through financial markets.
The Dow Jones Industrial Average .DJI lost 1 percent and the S&P 500 .SPX shed 0.69 percent. Shares of industrial heavyweights Boeing (BA.N) and Caterpillar (CAT.N) both fell, with Boeing down 1.7 percent and Caterpillar down 2.3 percent. European shares opened higher, however.
Tariffs of 25 percent on steel imports and 10 percent on aluminium were due to be imposed on the EU, Canada and Mexico from midnight (0400 GMT on Friday), Ross told reporters.
“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,” he said.
Canada and Mexico, embroiled in talks with the United States to modernize the North American Free Trade Agreement (NAFTA), responded swiftly and German Economy Minister Peter Altmaier said the EU might team up with them.
Source: https://uk.mobile.reuters.com/article/businessNews/idUKKCN1IV2TR
