Published: Fri, June 01, 2018
World Media | By Cesar Oliver

Trump tell allies to fix trade after U.S. tariffs strike

Trump tell allies to fix trade after U.S. tariffs strike

He said he's still planning to make a trip to Beijing this weekend even after the US announced it would slap tariffs on $50 billion in Chinese goods, jeopardizing a fragile agreement to reduce the USA trade deficit with China.

News of the tariffs rattled global markets and sparked sell-offs of manufacturing shares by USA investors.

Asked whether the company could cut its costs by 20% to maintain its competitiveness, Mr Ellis said: "We can't do that". And America is already locked in an escalating trade dispute with China - as both countries announce new penalties on a variety of goods aimed at hitting each other other hardest.

The 25 per cent tariff on steel and 10 per cent tariff on aluminum will be imposed effective midnight.

"Without a strong economy, you can't have a strong national security, ' he said".

The import tariffs - 25 percent on steel and 10 percent on aluminum - have been imposed by the US under Section 232 of the Trade Expansion Act of 1962.

"And we are working very hard to remind our American partners that we have such an integrated procurement supply chain that it's very difficult to fathom that there would be a security risk imposed by Canada".

Canadian Prime Minister Justin Trudeau has lashed the United States for lumping them with the steel tariff.

"This is not the way we do business, and certainly not between longstanding partners, friends and allies", EU Trade Commissioner Cecilia Malmstrom said in a statement.

Canadian Foreign Minister Chrystia Freeland had traveled to Washington on Tuesday to discuss the issue, among other matters, with U.S. Trade Representative Robert Lighthizer.

Canada and Mexico, embroiled in talks with the United States to modernise the North American Free Trade Agreement (Nafta), responded swiftly and German Economy Minister Peter Altmaier said the European Union might team up with them.

Juncker called the US action "unjustified" and said Europeans had no alternative but to respond with tariffs of their own and to lodge a case against Washington with the World Trade Organization in Geneva.

The Trump administration argues the tariffs are necessary to tackle overcapacity that is damaging U.S. steel manufacturers.

Manfred Weber, an ally of German Chancellor Angela Merkel, said "we will have no choice but to defend European industry, jobs and interests".

The British government said it was "deeply disappointed" and the United Kingdom and other European Union countries "should be permanently and fully exempted" from the tariffs.

Henrar said it was too early to estimate the consequences for Tata Netherlands' exports to the US, which yearly amount to around 500 million euros ($584 million).

But their hopes came crashing down when US Commerce Secretary Wilbur Ross said the EU, Canada and Mexico would no longer be exempted.

In response to the announcement, European Commission President Jean-Claude Juncker lamented that today is a bad day for world trade, adding that it is "totally unacceptable that they impose unilateral tariffs on trade - countermeasures will follow".

But the impending arrival of "Brexit Day" makes the United Kingdom more vulnerable in a global trading atmosphere poisoned by insularity and mistrust, says Sean O'Grady in The Independent.

And the Mexican government said that the United States action was not justified, and that it would retaliate with its own comparable penalties on USA products including lamps, pork, fruit, cheese and flat steel. The EU also started the process of filing a complaint with the World Trade Organization.

"The industry remains greatly concerned about these potential tariffs", said Brian Wick, executive director of the Cape Cod Cranberry Growers Association.

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