Trade tariffs: Chorus of condemnation intensifies-Trump


Massive US tariffs have come into force as condemnation of the Trump administration's move intensifies.
Criticism of the import tax on steel and aluminium from the EU, Canada and Mexico was joined by top Republicans.
Leaders from affected nations reacted furiously, setting out tit-for-tat tariffs on the US, ranging from steel to sleeping bags and ballpoint pens.
French President Emmanuel Macron told Mr Trump by phone that the US move was "illegal".
Mr Macron told him the EU would respond in a "firm and proportionate manner", the Elysee Palace says.
The French president normally enjoys a good relationship with his US counterpart.
Mr Trump has justified the tariffs, which came into force on Friday, by arguing that US steel and aluminium producers are vital to national security and threatened by a global supply glut.
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Bernd Lange, chair of the European Parliament's international trade committee, said the US tariffs were illegal. He hoped a trade war could be avoided but warned that Mr Trump's action demonstrated the president was "not willing to stick to the rules".
Justin Trudeau, the Canadian Prime Minister, rejected the claim that his country posed a national security threat to the US.

What are others saying?

UK International Trade Secretary Liam Fox said the 25% levy on steel was "patently absurd", adding: "It would be a great pity if we ended up in a tit-for-tat trade dispute with our closest allies."
Barry Gardiner, his Labour shadow, told the BBC's Today programme the US measures were "based on a lie", adding the UK should not be "bullied by the president... we believe in a rules-based system and Trump doesn't".
Gareth Stace, head of trade body UK Steel, said the tariffs were "no way to treat your friend" and called on the government to safeguard the industry's 31,000 jobs.
Germany's economy minister, Peter Altmaier, hoped a decisive EU response would make Mr Trump reconsider his decision, while Mexican Foreign Minister Luis Videgaray said his country would also impose duties.
Opposition to the tariffs was also voiced by prominent Republicans. House Speaker Paul Ryan, the most influential Republican in Congress, said the move "targets America's allies when we should be working with them to address the unfair trading practices of countries like China".

What do the US tariffs mean?

Mr Trump first announced plans for the tariffs in March, but granted some exemptions while countries negotiated.
On Thursday, US Commerce Secretary Wilbur Ross said talks with the EU, Canada and Mexico had not made enough progress to warrant a further reprieve, meaning tariffs of 25% on steel and 10% on aluminium have now come into effect.
They apply to items such as plated steel, slabs, coil, rolls of aluminium, and tubes - raw materials which are used extensively across US manufacturing, construction and the oil industry.
Mr Ross said the president had the authority to lift the tariffs or alter them at any time, leaving room for "flexibility".
"We continue to be quite willing and indeed eager to have discussions with all those parties," he said.

What will Europe, Canada and Mexico do?

The EU has issued a 10-page list of retaliatory tariffs on goods from cast iron to kidney beans and said it will take action against the US at the World Trade Organization.
Canada said it would impose tariffs of up to 25% on about $13bn worth of US exports from 1 July. Goods affected will include some American steel as well as consumer products such as yoghurt, whiskey and coffee.
Mexico's economy ministry said it was planning new duties for steel, pork, apples, grapes, blueberries and cheese.
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What will the economic effect be?

Canada, Mexico and the EU together exported $23bn (£17bn) worth of steel and aluminium to the US in 2017 - nearly half of the $48bn of total steel and aluminium imports last year.
European firms have said they fear lower US demand for foreign steel will divert shipments to Europe.
Analysts at IHS Markit expected the effects to be distributed across a wide range of markets, limiting the effect on steel prices outside the US.
That leaves America to bear the brunt of the economic impact, which economists say will appear in the form of higher prices and job losses - as many as 470,000 by one estimate.
Steel prices in the US have already risen due to the uncertainty and may increase as the tariffs hit imports.
Consumers outside the US could see prices of some goods fall, while those in America may end up paying more.


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