Trump to remove tariff exemption from EU, Canada, Mexico

Trump to remove tariff exemption from EU, Canada, Mexico

Tariffs of 25 per cent on steel imported into the United States and 10 per cent on imported aluminum will take effect as of midnight Thursday, Mr. Ross told reporters on a conference call.

The Prime Minister's Office said they "all agreed to continue to defend the Canadian steel and aluminum industry from unwarranted tariffs and to stand up for the best interests of all Canadian workers and businesses".

The talks around the monumental trade deal are now stalled out and new tariffs aren't likely to help break the deadlock.

USA and European officials held last-ditch talks in Paris to try to reach a deal, though hopes are low and fears of a trade war are mounting.

"We are prepared to react in a united and clear way whatever the decision of the (U.S.) president", he said.

By increasing the cost of imported steel and aluminum, companies that rely on the metals will be forced to either accept the higher costs and lower profits or pass on the price increase to consumers. Discussions could then be expanded to include other countries to agree on changes by the end of the year.

For instance, the Beer Institute - an industry group that represents U.S. brewers - warned that aluminum tariffs would drive up prices of beer cans.

The tariffs, which have increased friction with USA trading partners worldwide and prompted several challenges before the World Trade Organization, are aimed at allowing the U.S. steel and aluminium industries to increase their capacity utilization rates above 80% for the first time in years.

More news: Brandon Marshall: Donald Trump's Comments on NFL Anthem Policy 'Disgusting'

If he does impose the tariffs, the European Union has vowed to hit back with its own tariffs on American goods, including iconic items such as Harley-Davidson motorbikes, blue jeans and bourbon whiskey.

'Unilateral responses and threats over trade war will solve nothing of the serious imbalances in world trade.

Canada and Mexico had been exempted from the tariffs announced last March while negotiations over the North American Free Trade Agreement, or NAFTA, continued.

"We believe these tariffs aren't compatible with WTO rules", she said in Lisbon.

Ross said the White House would need to see the reactions of Canada, Mexico and the 28-nation European bloc before determining what to do next.

"We would operate within (multilateral) frameworks if we were convinced that people would move quickly", he said. European Union exports potentially subject to USA duties are worth 6.4 billion euros ($7.5 billion). NAFTA negotiations are deadlocked over tough protectionist demands from the United States.

But German Economy Minister Peter Altmaier insisted the Europeans were being "constructive" and were ready to negotiate special trade arrangements, notably for liquefied natural gas and industrial goods, including cars.

Related Articles