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Donald Trump puts world on brink of trade war after putting huge steel tariffs




Massive US tariffs on EU steel imports came into force on Friday as Britain made it clear a trans-Atlantic trade war would be bad for both sides. The 25 per cent levy on steel was branded ‘patently absurd’ by International Trade Secretary Liam Fox.

Dr Fox dismissed American claims the tariff, along with a 10% levy on aluminium, was needed for national security reasons as he signalled the UK was prepared for ‘tit-for-tat’ action. 

Branding the move by US president Donald Trump as ‘just protectionism’, he said: ‘We absolutely do not rule out counter measures. ‘Obviously, we still hope the United States will think again about this.

Donald Trump puts world on brink of trade war after putting huge steel tariffs
epa06697827 US President Donald J. Trump speaks during a joint news conference with Chancellor of Germany Angela Merkel (not pictured) in the East Room of the White House in Washington, DC, USA, 27 April 2018. Merkel is on a one-day working visit to the White House where she and President Trump were expected to discuss trade issues such as proposed US tariffs on European steel and aluminum products, in addition to topics such as NATO. EPA/MICHAEL REYNOLDS
NEW YORK, NY - MAY 31: Traders work on the floor of the New York Stock Exchange (NYSE) on May 31, 2018 in New York City. With news of the U.S. decision to impose tariffs on steel and aluminum imports from the European Union, Canada and Mexico, the Dow Jones industrial average fell over 250 points today. (Photo by Spencer Platt/Getty Images)

‘But, it would be a great pity if we ended up in a tit-for-tat trade dispute with our closest allies.’ Labour’s shadow international trade secretary Barry Gardiner said the US move risked a global trade war.

He said: ‘Liam Fox needs to take urgent action to defend British industry from these unfair measures. ‘If the Government had any doubt as to how ‘special’ our relationship with the US is to President Trump then these tariffs make it clear that even close allies will not be spared from his America First policies. 

‘Labour would coordinate a decisive set of counter-measures with the EU and challenge the USA at the World Trade Organisation.’

NEW YORK, NY - MAY 31: Traders work on the floor of the New York Stock Exchange (NYSE) on May 31, 2018 in New York City. With news of the U.S. decision to impose tariffs on steel and aluminum imports from the European Union, Canada and Mexico, the Dow Jones industrial average fell over 250 points today. (Photo by Spencer Platt/Getty Images)
People fish on Hamilton Harbour near steel mills in Hamilton, Ontario on May 31, 2018, on the eve of tariffs being imposed on the Canadian industry by the Trump administration. The United States will impose harsh tariffs on steel and aluminum imports from the European Union, Canada and Mexico as of midnight (0400 GMT Friday), Commerce Secretary Wilbur Ross announced Thursday. / AFP PHOTO / Geoff RobinsGEOFF ROBINS/AFP/Getty Images

The EU is set to take action against the US at the World Trade Organisation, while imposing duties on American imports expected to include orange juice, peanut butter and other goods. Dr Fox said he would speak to US commerce secretary Wilbur Ross about the situation again on Monday.

Welsh Secretary Alun Cairns spoke to the First Minister of Wales, Carwyn Jones, about the tariffs, saying the Government was seeking a solution. A Government spokesman said: ‘The Secretary of State gave assurances that the UK Government is fully committed to reaching a successful resolution. ‘Both ministers agreed to work together and be a strong voice for Welsh steel as discussions progress.’

A man looks at an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo Friday, June 1, 2018. Shares were mostly higher in Asia on Friday after U.S. stocks slid amid mounting trade tensions. U.S. benchmarks fell after the Trump administration said it is imposing tariffs on steel and aluminum imported from Europe, Canada and Mexico. (AP Photo/Eugene Hoshiko)

The EU threatened to counterpunch by targeting US products, including Kentucky bourbon, blue jeans and motorcycles. David O’Sullivan, the EU’s ambassador in Washington, said the retaliation will probably be announced in late June. 

Mexico complained that the tariffs will ‘distort international trade’ and said it will penalize US imports including pork, apples, grapes, cheeses and flat steel. 

In Canada, Prime Minister Justin Trudeau said: ‘These tariffs are totally unacceptable.’ Canada announced plans to slap tariffs on 12.8 billion dollars-worth (£9.65 billion) of US products, ranging from steel to yogurt and toilet paper. 

‘Canada is a secure supplier of aluminium and steel to the US defence industry, putting aluminium in American planes and steel in American tanks,’ Mr Trudeau said. ‘That Canada could be considered a national security threat to the United States is inconceivable.’ 

Mr Trump had campaigned for president on a promise to crack down on trading partners that he said exploited poorly negotiated trade agreements to run up big trade surpluses with the US.

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