Canada/US on verge of trade war?

Canada/US on verge of trade war?

A global trade war is looming after countries hit by United States tariffs on steel and aluminium vowed to retaliate.

In an eight-page document sent to the World Trade Organization seen by Reuters, Brussels has specified which American goods will be taxed. When asked about any concerns related to the G7, Trudeau said Canada would "continue to highlight that working together as friends and allies is extremely important for the prosper advertise process prosperity to each of our citizens".

"This is stupid. It's counterproductive", former British trade minister Francis Maude told BBC.

"And nationalism is war. That's exactly what happened in the 30s", he added.

The Associated Press reports that French President Emmanuel Marcon told Trump during a phone call that the new tariffs on steel and aluminum on European, Mexican and Canadian imports are "illegal" and a "mistake".

The Dow Jones Index dropped 250 points on the announcement and fear is growing that similar tariffs will be announced by Russian Federation and China in coming days.

Finance Minister Bill Morneau said in a statement late Wednesday that Canada has expanded the scope of its country of origin marking regime for steel and aluminum products to better determine where they come from.

Before the tariffs were announced, Canadian Foreign Minister Chrystia Freeland said the Canadian government would take steps to protect jobs and industry, calling the U.S. justification "frankly absurd".

The American exports targeted in the initial wave of European Union retaliatory tariffs are worth roughly €2.8 billion ($3.3 billion) annually, according to European Union officials.

According to the Federal government, the tariffs will harm industry and workers on both sides of the Canada-US border, and disrupt linked supply chains that have made North American steel and aluminum more competitive around the world. "That Canada could be considered a national security threat to the United States is inconceivable".

This morning, President Trump announced that he was imposing tariffs on steel and aluminum.

Identical tariffs were also placed on imports from Mexico and the European Union.

MacKay said that like with any war, there will be collateral damage, and classified this week's events as "friendly fire". "But we see no sign of that in this action today by the USA administration".

The world's two biggest economies have threatened to impose tariffs on up to $200 billion worth of each other's products.

Trump previously exempted the North American and European countries from the 25 percent tariff on steel and 10 percent tariff on aluminum, when his administration first put them into effect in March.

"These tariffs are an affront to the long standing security partnership between Canada and the United States, and in particular, an affront to the thousands of Canadians who have fought and died alongside their American brothers in arms", he said, noting the USA national security justification for its measures.

The products would be hit if the WTO rules that the USA steel and aluminum tariffs are illegal.

'We're talking about NAFTA.

"Canada has treated our Agricultural business and Farmers very poorly for a very long period of time", the president said in a tweet.

Industry experts have warned that EU retaliation could encourage the Trump administration to strike back with more trade barriers on items like European cars.