USA planning to impose steel, aluminum tariff on EU

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Canada filed a complaint at the World Trade Organization in response to "illegal" United States tariffs on imports of Canadian steel and aluminum, Foreign Minister Chrystia Freeland said.

The Trump administration announced on Thursday it will impose tariffs on steel and aluminium imports from Europe, Mexico and Canada after failing to win concessions from the American allies.

Trump took to Twitter again on Friday to castigate Canada after his testy exchange with Canadian Prime Minister Justin Trudeau on Thursday over rocky negotiations to update the North American Free Trade Agreement.

Mexico complained that the tariffs will "distort worldwide trade" and said it will penalize USA imports including pork, apples, grapes, cheeses and flat steel.

Trump had originally imposed the tariffs in March, saying a reliance on imported metals threatened national security.

President Donald Trump is moving ahead with steel and aluminum tariffs on some of the United States' closest allies and that could result in serious pain for agriculture.

In a statement, European Commission President Jean-Claude Juncker said "this is protectionism, pure and simple". Mexico said it would penalize USA imports including pork bellies, apples, grapes, cheeses and flat steel.

As per expert, the move marks the Trump's most aggressive trade action yet against major United States trading partners, which had been asking for permanent relief.

The EU trade commissioner, Cecilia Malmstrom, has said Mr Trump's tariffs are "further weakening transatlantic relations".

French President Emmanuel Macron, who has enjoyed a warm relationship with Trump, "deplored" the United States move declaring it "illegal".

"The talks are taking longer than we had hoped". Talks with Europe had "made some progress" but not enough for additional exemptions, he said in a conference call from Paris.

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Japanese Finance Minister Taro Aso said on Friday he had told his G7 counterparts the group of advanced economies should send a message that it continues to watch market moves carefully.

If the USA moves forward with its tariffs, the European Union has threatened to impose retaliatory tariffs on US orange juice, peanut butter and other goods in return.

"The Americans have decided, in our mind, to take actions that's not at all constructive, it's actually destructive to our ability to get things done around tariffs on steel and aluminum", he said after the meeting ended.

Canada and Mexico aren't immune from the tariffs either, and both countries have said they will retaliate.

In a statement to The Associated Press, Volkswagen said Friday it views the tariffs with "regret and concern".

Tariffs are a tax on imports.

Stock prices slumped amid fears of a trade war, with the Dow Jones industrial average falling almost 252 points, or 1 per cent, to 24,415.84.

Former British trade minister Francis Maude has condemned the United States' decision to impose tariffs on steel and aluminum imports as "stupid" and counterproductive.

Two things: Raise government revenue and protect domestic industries from foreign competition. "We will respond appropriately".

French President Emmanuel Macron called the US decision to levy tariffs on the European Union "illegal" and a "mistake".

He said: "We chose also some symbolic products like Harley-Davidson to make clear here is a red card". But it granted an exemption to the European Union and other USA allies; that reprieve expires Friday.

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