Published: Thu, May 31, 2018
Money | By Bruce West

Shares of Canadian metal companies take hit on USA tariff announcement

Shares of Canadian metal companies take hit on USA tariff announcement

"The EU believes these unilateral US tariffs are unjustified and at odds with World Trade Organization rules".

"We have to believe that at some point, common sense will prevail", Canadian Prime Minister Justin Trudeau said at a news conference, hours after the United States said it will impose tariffs on aluminum and steel imports from Canada, Mexico and the European Union. The action was mainly targeted at China over accusations of flooding the global market with cut-rate metals and dragging down prices.

Some stocks of USA companies that could be adversely affected by the tariffs, or by possible retaliatory action against the US, headed down.

The EU has said it will retaliate by slapping tariffs on a range of high-profile American goods and will start a case against the USA at the World Trade Organisation, which polices global trade.

Such tariffs could also "lead to the demise of the multilateral trading system based on WTO rules", the ministers said.

The EU said it would take immediate steps to retaliate, while Mexico vowed to impose duties on everything from USA flat steel to cheese. On April 30, he extended for 30 days the temporary exemption from the steel and aluminum tariffs for Canada, Mexico and the European Union to allow for further negotiation.

Ross, meanwhile, said that he still plans to leave for China on Friday for the resumption of trade talks.

The Trump administration also has threatened to impose tariffs on auto imports, is engaged in negotiations with China to reduce America's yawning trade deficit and has said it will punish Beijing for stealing its technology by imposing tariffs on $50 billion (37.6 billion pounds) of imports from China. But if there are no exemptions, she said, "We will respond in an intelligent, decisive and joint way", Merkel said in Lisbon.

"Canada considers it frankly absurd that we would in any way be considered to be a national security threat to the United States", Freeland told reporters Wednesday. "Tariffs on steel and aluminum imports are a tax hike on Americans and will have damaging consequences for consumers, manufacturers and workers", said Sen.

Liam Fox questioned the USA decision to 25% tax on steel and a 10% tax on aluminium from the EU, Mexico and Canada.

Trump imposed the steel and aluminum penalties under a 1962 law that gives the president broad power to increase or reduce tariffs on goods deemed critical to national security.

And it is engaged in talks with Canada and Mexico to update the North American Free Trade Agreement (NAFTA). Negotiations with Europe have "made some progress" but not enough to merit an exemption, he added.

U.S. President Donald Trump look on as he welcomes South Korea's President Moon Jae-In in the Oval Office of the White House in Washington, U.S., May 22, 2018. The administration had determined that imports of the metals threatened national security by undermining domestic production in those sectors.

The United States used 5.5 million tonnes of aluminum past year, largely imported from Canada, but only produced about 700,000 tonnes domestically.

Megan Cassella, Adam Behsudi and Hans von der Burchard contributed reporting.

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