Donald Trump Faces European Leaders As The War Over Global Trade Heats Up
Donald Trump vows to strike back at European leaders who said they would retaliate for his promised tariffs on aluminum and steel.

The US President’s plan to slap taxes on steel and aluminum imports was slammed as “absolutely unacceptable” by Canadian Prime Minister Justin Trudeau whose country is America’s biggest foreign source of both metals.

Donald Trump announced last week that steel imported into the US would be slapped with a 25% tariff and aluminum with a 10% tariff. The announcement has shocked world markets and prompted the possibility that trading partners would fight back with tariffs of their own.

“We’re pretty consistently flabbergasted that Canada is at the top of the hit parade of trade villains in Trump’s eyes,” said Douglas Porter, chief economist at the Bank of Montreal.

Last year, Canada, the largest exporter of steel and aluminum to the US supplied $7.2 billion of aluminum and $4.3 billion of steel to the United States.

In his trade war, Trump accused China of forcing US steel and aluminum companies to fold by inundating the market with cheaper materials while China provides only 2% of US steel imports. The china leaders have remained the most muted among leading trading partners in its response to Trump’s tariff threats.

Read More: Two Thirds Of Britons Oppose Inviting Donald Trump To Prince Harry And Meghan Markle’s Wedding; Poll

Justin Trudeau called Trump’s tariff proposal “absolutely unacceptable,” and Foreign Minister Chrystia Freeland also threatened retaliatory measures if Canada isn’t exempted from the trade actions.

“We will continue to engage with all levels of the American administration in the coming days so that they understand that this proposal is unacceptable,” the PM said.

The tariffs will also hit the UK, Germany, South Korea, Turkey and Japan, countries with which the US has extremely close national security ties.

“The president is going to quickly find out that you can’t start a trade war with your allies and expect them to work with you on other issues,” said Jamie Fly, senior fellow at the German Marshall Fund: “The administration is squandering the little credibility they had with transatlantic partners at a time when they’re asking them to help fix the Iran deal, fight terrorism and increase defense spending. It will not work.”

In his Twitter posts on Saturday, the US president vowed to strike back at European leaders who said they would retaliate for his promised tariffs on aluminum and steel.

“If the EU wants to further increase their already massive tariffs and barriers on US companies doing business there, we will simply apply a Tax on their Cars which freely pour into the US They make it impossible for our cars (and more) to sell there. Big trade imbalance!” Trump tweeted.

 

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