US on brink of trade war with EU, Canada and Mexico as tit-for-tat tariffs begin
The United States and its traditional allies are on the brink of a full-scale trade war after European and Canadian leaders reacted swiftly and angrily to Donald Trump’s decision to impose tariffs on steel and aluminium producers.
The president of the European commission, Jean-Claude Juncker, promised immediate retaliation after the US commerce secretary, Wilbur Ross, said EU companies would face a 25% duty on steel and a 10% duty on aluminium from midnight on Thursday.
Europe, along with Canada and Mexico, had been granted a temporary reprieve from the tariffs after they were unveiled by Donald Trump two months ago.
However, Ross sent shudders through global financial markets when he said insufficient progress had been made in talks with three of the US’s traditional allies to reduce America’s trade deficit and that the waiver was being lifted.
Wall Street slumped as the Dow Jones Industrial Average shed more than 200 points, while shares across Europe also declined.
The move from Washington – which comes at a time when Trump is also threatening protectionist action against China – triggered an immediate and angry response from Canada, Brussels and from individual European capitals.
Juncker called the US move “unjustified” and said the EU had no choice but to hit back with tariffs on US goods and a case at the World Trade Organisation in Geneva.
So what is going to happen here then ?
Gee, maybe the EU will drop its tariffs on the US?
Why is it OK for the EU to impose tariffs, but if President Trump does then its “foolish”?
They like paying higher prices for stuff.
The US has been getting blasted by other countries for decades.
Bout time we returned the favor.