The US decided to impose tariffs on steel and aluminium imports from key allies in Europe and North America. Namely, the US will establish a 25% tax on steel and 10% tax on aluminium from the EU, Mexico and Canada.
Canada and Mexico immediately retaliated the tariffs on steel and aluminum imports, increasing fears for a global trade war, Reuters reported. As Germany’s Economy Minister noted, the EU is already planning its response in cooperation with Canada and Mexico.
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Moreover, Canada will impose retaliatory tariffs on £9.6 billion worth of US exports and challenge US steel and aluminium tariffs under the North American Free Trade Agreement and the World Trade Organization. The Canadian tariffs will enter into force from July 1 and will last until the US lifts its own measures.
Namely, Canada released two lists of US products, imposing a 25% tariff on the first list and 10% on the second. The tariffs are now subject to a 15-day consultation period, when Canadians will give their consults.
The tariffs imposed by the US ended the uncertainty about possible exemptions and indicate a strict US approach to trade negotiations. Tariffs of 25% on steel imports and 10% on aluminum will be imposed on EU, Canada and Mexico from June 1.
This development comes at a time when during the visit of the Chinese Vice Premier Liu He in Washington for economic and trade negotiations, it was announced that China and the United States have agreed not to launch a trade war, reaching consensus on economic issues.
