Canada's Trudeau: NAFTA Talks Stalled After Pence Ultimatum

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U.S. Commerce Secretary Wilbur Ross dropped a bombshell when he said Washington would proceed with 25 per cent tariffs on Canadian steel and 10 per cent tariffs on Canadian aluminum, using a national-security clause in U.S. trade law to justify the move.

A 25 per cent tariff on steel imports and 10 per cent tariff on aluminum imports will be imposed on the EU, Canada and Mexico from midnight (12 pm Friday, Singapore time), Ross told reporters.

Brussels has lodged an eight-page list at the World Trade Organization of goods it would hit with retaliatory measures.

"He's created a trade war that is going to cause a massive problem for steel stockholders, steel producers throughout Europe".

Maude on Friday told the BBC "this is stupid".

"Any government that embarks on a protectionist path inflicts the most damage on itself", he added.

"And nationalism is war".

No one can say for certain just yet exactly when Trump's "calibrations" will be proven incorrect, "least of all on Day 2".

The import duties threaten to drive up prices for American consumers and companies and are likely to heighten uncertainty for businesses and investors around the globe. The Dow fell about 200 points.

According to Navarro, the president's decision to end the exemptions is not about China or unfair trade but more about defending the USA against countries who are running a large trade surplus at the expense of American jobs.

The Canadian prime minister said Thursday that he felt the U.S., Mexico, and Canada were on the verge of renegotiating NAFTA, calling it a "win, win, win", before talks stalled after the Pence call, The Post reported. The state sent $1.75 billion worth of goods to Canada in 2017 that could fall under the tariffs.

According to the Federal government, the tariffs will harm industry and workers on both sides of the Canada-US border, and disrupt linked supply chains that have made North American steel and aluminum more competitive around the world. "That Canada could be considered a national security threat to the United States is inconceivable".

"The US has agreed on a range of measures with Argentina and Australia, including reducing excess aluminium production and excess aluminium capacity, measures that will contribute to increased capacity utilisation in the United States, and measures to prevent the trans-shipment of aluminium articles and avoid import surges", Mr Trump wrote in a proclamation on Thursday.

Other countries, including Japan, America's closest ally in Asia, are already paying the tariffs.

Jean-Claude Juncker, the president of the European Commission, promised "immediate retaliation", The Guardian says. Tariffs on motorcycles will affect Harley Davidson, which has its headquarters in House Speaker Paul Ryan's native Wisconsin.

The EU, Canada, and Mexico took umbrage with the US's justification for the tariffs.

International Monetary Fund managing director Christine Lagarde tweeted from the G7 Symposium in Whistler, Canada, that President Donald Trump's imposition of metal tariffs on key allies would disrupt trade.

Trump's comments came as his administration continued to face fierce criticism from officials in Canada, Mexico and Europe over the tariffs.

Germany's Economy Minister said early on Friday (June 1) the European Union might look to coordinate its response with Canada and Mexico. "The EU believes these unilateral US tariffs are unjustified and at odds with World Trade Organisation rules", Jean-Claude Juncker, President, European Commission, said on Thursday. But the NAFTA talks stalled.

European Union officials say the total value of goods targeted is a dollar for dollar response to USA tariffs.

Nevertheless, "Trump's contempt for global rules can deal a significant blow to business confidence especially in trade-oriented nations", the expert said.

"There are periodic disagreements between any two countries on any given set of topics".

Across the European Union, the tariffs are expected to affect £5.6bn worth of steel exports.

"The US is playing a risky game", Malmström told reporters".