United States metals tariffs won't 'break' Canada's economy: Economist

President Donald Trump announced in March that the United States would slap a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum citing national security

President Donald Trump announced in March that the United States would slap a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum citing national security

President TrumpDonald John TrumpTrump tells Trudeau on NAFTA: US will agree to fair deal or "no deal at all" Dem senator suggests Trump "sending a message to witnesses" with pardons Kim Jong Un hasn't changed his stance on denuclearization: report MORE on Friday struck a defiant tone as he waved off concerns of a mounting trade dispute with the European Union and other USA allies over steep tariffs on steel and aluminum imports.

In announcing the tariffs on Thursday, U.S. Secretary of Commerce Wilbur Ross noted that Canada and Mexico were initially exempted from Trump's tariffs.

The Dow Jones Industrial Average lost 1 percent and the S&P 500 shed around 0.66 percent.

Canada's planned retaliatory measures will take effect July 1 and stay in place until the USA backs down.

Getting rid of the exemptions for Canada and Mexico, meanwhile, could complicate ongoing negotiations on NAFTA.

That's the only way forward, now that Trump has triggered a sprawling trade war by imposing import duties of 25 per cent on steel and 10 per cent on aluminum from Canada, Mexico and Europe, multiple sources familiar with Ottawa's position told The Canadian Press.

"These tariffs are an affront to the long standing security partnership between Canada and the United States", said Trudeau, as Ottawa hit back with retaliatory duties on USA imports worth up to $12.8 billion.

Canadian Prime Minister Justin Trudeau criticized the US decision, calling the tariffs "totally unacceptable" and their premise of Canada being a threat to national security "inconceivable".

Trudeau also discussed NAFTA talks, saying Canada, the United States and Mexico had come so close to a deal that he had offered to meet personally with President Donald Trump in Washington.

A fair deal is the furthest thing from Trump's mind, something that Thursday's sweeping tariffs decision demonstrates, according to business leaders and trade analysts.

"We lose a lot of money with Canada and we lose a fortune with Mexico". He also said the trade balance between the countries was $2 billion in favor of the US, and that Canada bought half of all USA steel exports, easily the world's biggest market for USA steel. The interbank rate dropped 0.93% to 19.91 pesos to the dollar, while banks were selling pesos for as much as 20.35 to the dollar. The EU had previously released a list of United States products that would be subject to tariffs in the event the metal restrictions went into effect. Shares of Harley-Davidson Inc fell 2.2 percent and Brown-Forman Corp, maker of Early Times and other bourbon brands, lost 2.1 percent.

EU members have given broad support to a European Commission plan to set duties on 2.8 billion euros ($3.4 billion) of U.S. exports if Washington ends tariff exemptions.

All three quickly responded with threats of tariffs on U.S. goods.

One of several Republicans to voice opposition, Ryan said the administration should not be targeting "America's allies when we should be working with them to address the unfair trading practices of countries like China".

Trump has repeatedly threatened to junk the 1994 trade agreement unless it's renegotiated to fix what he says are terms unfavorable to the United States.

The tariffs are part of Mr Trump's effort to protect U.S. industry and workers from what he described as unfair worldwide competition, a key theme of his "America First" agenda. The bloc immediately responded to the USA move, stating that it would proceed with a World Trade Organization (WTO) dispute and impose additional duties on U.S. imports. Shares of Century aluminium Co jumped 3.3 percent but Alcoa Corp shed 0.9 percent. The U.S. produced 785,000 metric tons of aluminum and imported 5 million tons a year ago.

While the tariffs have had "major, positive effects" on industry jobs and workers, "the Trump administration's actions underscore its commitment to good-faith negotiations with our allies to enhance our national security while supporting American workers", the White House said in a statement. "Highly restrictive on trade!" the president wrote on Twitter. "When push comes to shove, the European Union definitely doesn't want a trade war".

"I'll be stating very clearly our disagreement with the actions they've taken", Canadian Finance Minister Bill Morneau told reporters ahead of the meetings.

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