European Union hits out at trade 'bullies' as Donald Trump row deepens

European Union hits out at trade 'bullies' as Donald Trump row deepens

Ross' discussions come after Trump signed an executive order last week imposing tariffs of 25% on steel and 10% on aluminum. Canada and Mexico were temporarily exempt from the tariffs - but the Trump administration has suggested that'd depend on a new NAFTA deal.

What is unfolding before us is also a good reminder that we need to make a complete review of trade policy per se the United States under Trump.

Mr Trump said in a tweet on Saturday the United States was ready to drop its tariffs if the European Union lowered its "horrific" rates on USA products.

"If they drop their horrific barriers and tariffs on USA products going in, we will likewise drop ours. Big Deficit. If not, we Tax Cars etc. FAIR!"

"We are negotiating the NAFTA accord in good faith and we will continue to do so, but I don't want the president to think he can bring tariffs on Canadian steel and aluminum without there being consequences", he told Radio-Canada earlier in the day. Chinese commerce minister Zhong Shan said, "There are no winners in a trade war".

He said other countries could be spared the tariffs if they can convince the United States government that their steel and aluminum exports don't threaten American industry. "The U.S. industry is a large net exporter and thus vulnerable to potential retaliatory trade actions", he wrote to clients.

The EU exports around five billion euros' ($4 billion) worth of steel and a billion euros' worth of aluminium to the USA each year, and the European Commission, the bloc's executive arm, estimates Trump's tariffs could cost some 2.8 billion euros.

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"Tariffs threaten to strangle the global golden goose", said Mark Zandi, chief economist at Moody's Analytics.

Trump insisted there would be a fair process of negotiation, including talks of exemptions. Every other country will be required to negotiate a separate deal with U.S. Trade Representative Robert Lighthizer to avoid the duties, which are scheduled to take effect in less than two weeks.

Asked about Trump's tweet, the European Union in a statement said that "no further meetings as such are planned at the moment". "If anyone starts throwing stones, it's better first make sure he's not living in a glass house", the European Commission said in a statement.

Donald Trump's decision to add tariffs to steel and aluminum imports has shaken worldwide markets.

Trudeau said Canada had a lot more work to do and would press Washington to ensure the exemptions were permanent. "Increased costs will make our industry less competitive and harm American workers, consumers, and our economy". If our neighbors to the north call Trump's bluff, dairy farmers such as those of central NY - the No. 3 dairy producing state in the US - could be collateral damage.

He also highlighted the strength of the national security relationship between the United Kingdom and the US.

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