New tariff unleashed by US set to affect European Union, Canada and Mexico

The United States yesterday said it was moving ahead with tariffs on aluminum and steel imports from Canada, Mexico and the European Union, ending a two-month exemption and potentially setting the stage for a trade war with some of America’s top allies. US Commerce Secretary Wilbur Ross told reporters on a telephone briefing that a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports from the EU, Canada and Mexico would go into effect at midnight (0400 GMT on Friday). “We look forward to continued negotiations, both with Canada and Mexico on the one hand, and with the European Commission on the other hand, because there are other issues that we also need to get resolved,” he said. Ross offered little detail about what the EU, Canada and Mexico could do to have the tariffs lifted.  G e r m a n m a g a z i n e Wirtschaftswoche reported on Thursday that Trump had told French President Emmanuel Macron he wanted to stick to his trade policy long enough that Mercedes-Benz cars were no longer cruising through New York, news that dented share prices in BMW, Daimler and Volkswagen. The Trump administration launched a national security investigation last week into car and truck imports, using the same 1962 law that he has applied to curb incoming steel and aluminium. French Finance Minister Bruno Le Maire met Commerce Secretary Ross on Thursday hoping to end the stand-off. Europe did not want a trade war, he said, but Washington had to back down from “unjustified, unjustifiable and dangerous tariffs”. The European Union would respond with “all necessary measures” if the United States imposed them. EU countries have given broad support to the Commission’s plan to set duties on 2.8 billion euros ($3.4 billion) of US exports, including whiskey and motorbikes, if Washington ends the EU tariff exemption. EU exports potentially subject to US duties are worth 6.4 billion euros ($7.5 billion).