USA 'playing risky game' with metal tariffs, says EU

Canada's Justin Trudeau says NAFTA talks broke down after Pence made ultimatum

Canada 'deplores' tariff decision: Trudeau

The U.S. has a shortage of domestic supply of steel and aluminum, while prices have risen nearly 40 per cent since Trump announced tariffs in March, when he temporarily exempted Canada.

"These tariffs are a new US$347 million tax on the USA beer industry", CEO Jim McGreevy said in a statement.

The EU said it has opened legal challenges against China and the United States at the World Trade Organization on Friday as punishing trade tariffs announced by Washington raised the prospects of a global trade war. -European animosity over the Iraq war in 2003 escalated to the point that some conservative USA lawmakers wanted French fries renamed in the House of Representatives cafeteria.

United Kingdom steel bosses have also expressed fears of the effect tariffs will have on the industry , saying that the USA move is a "big mistake". "So now this door for the moment is closed", she added. But the US and China both propose justifying tariffs under domestic law, rather than following established WTO procedures, which could undermine the WTO's ability to mediate. Europe and Mexico pledged to retaliate quickly, exacerbating trans-Atlantic and North American trade tensions.

The EU is preparing to hit back at the USA with tariffs of its own against American products.

"This is a risk that we've highlighted in our monetary policy report in the past, the risk of protectionism and the fear of the tit-for-tat responses", he said.

The German government likewise declared in a statement: "We consider this unilateral measure to be illegal; the cited grounds of national security do not stand up".

The U.S. action widens a rift with America's closest allies, threatens to drive up prices for companies and consumers that buy steel and aluminum, heightens uncertainty for businesses and is already alarming investors in global financial markets.

The tariffs, announced by Commerce Secretary Wilbur Ross, ended months of uncertainty about potential exemptions and suggested a hardening of the US approach to trade negotiations.

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"I think it really just boils down to this very mercantilist viewpoint that the USA administration has that imports are bad, exports are good", he said. "The US economy will suffer as much as any other economy". "We are ready to rebuild this multilateralism with our American friends", he said.

"Canada is a secure supplier of aluminum and steel to the USA defense industry, putting aluminum in American planes and steel in American tanks", Trudeau said. Noting her discussions with US officials, she said.

The World Trade Organisation's former chief, Pascal Lamy, also said the damage would likely be limited in concrete terms.

Following Saturday's conclusion of a three-day meeting of G7 finance ministers, Canadian Finance Minister Bill Morneau issued a summary saying the other six members want Trump to hear their message of "concern and disappointment" over the US trade actions.

Meanwhile, the OECD says threatened new trade barriers and rising oil prices could hurt long-awaited global economic growth.

But Macron said those "who waged bilateral trade wars. saw an increase in prices and an increase in unemployment".

"Our steel and aluminium industries are hugely important to the United Kingdom, but they also contribute to U.S. industry including in defence projects which bolster USA national security", she said.

Ross criticized the European Union for its tough negotiating position.

At the Group of Seven ministerial meeting in Canada, US Treasury Secretary Steven Mnuchin faced stern reactions from his counterparts, who accused Trump of jeopardizing the world economy with steps that would prove job killers for all concerned.

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