Global Trade War On The Cards? Trump Threatens More Tariffs On EU & Canada, Draws Retaliation

 

 

US President Donald Trump on Wednesday threatened to escalate a global trade war with further tariffs on European Union goods, as major trading partners said they would retaliate for trade barriers.

 

Just hours after the 25 percent duties imposed by Trump on all US steel and aluminum imports took effect, the US President said he would impose additional penalties if the EU continues with its counter tariffs plan on some US goods next month. “Whatever they charge us, we’re charging them,” Trump said at the White House.

 

Trump’s action came following Canada’s move of imposing a similar amount of tariff on US goods in response to broader tariffs by Trump. Notably, Canada is the biggest foreign supplier of steel and aluminum to the United States. Canada Firm On Retalitory Tariffs “We will not stand idly by while our iconic steel and aluminum industries are being unfairly targeted,” Canada’s Finance Minister Dominic LeBlanc was quoted by Reuters. Meanwhile, the 27 countries of the European Union are less exposed, as only a “small fraction” of targeted products are exported to the United States, reuters reported citing Germany’s Kiel Institute. Trump To Respond With Further Tariffs Trump said he would respond with further tariffs if the EU followed through on its plan.

 

With Irish Prime Minister Micheal Martin at his side, Trump criticised the EU member country for luring away US pharmaceutical companies. Martin, in remarks delivered later at a White House ceremony, touted the history of free trade between the two nations. “Let us continue to build on that foundation,” he said looking at Trump. “Let us continue to work together to make sure that we maintain that mutually beneficial, two-way economic relationship that has allowed innovation and creativity and prosperity to thrive.”