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Canada has to 'fight fire with fire': Reaction to Trump's metals tariffs

01 June 2018
Canada has to 'fight fire with fire': Reaction to Trump's metals tariffs

European Union trade commissioner Cecilia Malmstrom said: "Now (Frankfurt: 11N.F - news) that we have clarity, the EU's response will be proportionate and in accordance with WTO rules". The US now leaves us with no choice but to proceed with a WTO dispute settlement case and with the imposition of additional duties on a number of imports from the US.

The United States said Thursday it will impose stiff tariffs on steel and aluminum imports from the European Union, Canada, Mexico, reviving fears of a trade war with angry allies and trading partners.

Back in March, Malmstrom said her tit-for-tat list included iconic United States products such as Levi jeans, bourbon, peanut butter, cranberries and orange juice.

It's a bad day for world trade.

"We did everything to avoid this outcome", said Malmström, who had repeatedly met with Trump administration officials in Washington in recent months, hoping to reach an exemption agreement.

The Mexican government said that the USA action was not justified, and that it would retaliate with its own comparable penalties on United States lamps, pork, fruit, cheese and flat steel.

That means from tonight all steel products entering the U.S. will face a 25 per cent tariff, while aluminium will be hit with a 10 per cent duty.

Trudeau and French President Emmanuel Macron made their cases separately Wednesday to dissuade Trump, who is using a national-security clause in USA trade law to justify the move.

Trudeau and French President Emmanuel Macron made their cases separately Wednesday to dissuade Trump, who is using a national-security clause in USA trade law to justify the move.

Ross told a conference call with media this morning that he is looking forward to continuing negotiations.

That's going to cook Trump's goose, considering when he first proposed the tariffs, he stated that the move was an attempt to bring jobs back to the Land of the Free, stressing that it would also help to prevent trade arrangements that failed to benefit the US.

"That Canada could be considered a national-security threat to the United States is inconceivable", said Trudeau, adding that the people of the USA are not Canada's target, and that the federal government would have far preferred that its hand wasn't forced. "One can think about making voters happy by saying, 'I have a victory, I'll change the rules, you'll see.'" But Macron said those "who waged bilateral trade wars... saw an increase in prices and an increase in unemployment".

"It sends a clear message that this kind of thing does not benefit anybody", Economy Minister Ildefonso Guajardo said in an interview on Mexican radio about the measures against US products ranging from steel to grapes.

The Prime Minister's Office said they all agreed to "continue to defend the Canadian steel and aluminum industry from unwarranted tariffs and to stand up for the best interests of all Canadian workers and businesses".

She said if there were no exemptions, "We will respond in an intelligent, decisive and joint way". Ben Sasse, R-Neb. "We've been down this road before-blanket protectionism is a big part of why America had a Great Depression". "The fact that we took a tariff action does not mean that we can not have trade negotiations".

Europe, Canada and Mexico say that as close allies of the United States they should receive exemptions from the measures.

"We continue to be quite willing and indeed eager to have further discussions", Mr Ross said.

"Our other expectation is that the government of Canada will take immediate action to ensure that there is no diversion of steel from other countries".