Trump to remove tariff exemption from EU, Canada, Mexico

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European Commission President Jean Claude Juncker said Trump's tariffs were "totally unacceptable" and promised to retaliate in due course.

Juncker said: "The US now leaves us with no choice but to proceed with a WTO dispute settlement case and with the imposition of additional duties on a number of imports from the US".

President Trump is imposing steel and aluminum tariffs on Canada, Mexico, and the European Union.

"Today is a bad day for world trade", she said.

Mexico has also responded, promising to slap tariffs on USA products including pork bellies, grapes, apples, and flat steel.

The NAFTA talks were one factor in the administration's decision to grant exemptions to Canada and Mexico from the steel and aluminum tariffs.

Economists say the standoff with the European Union could tip toward a trade war, particularly after Trump last week launched another national security investigation into auto and truck imports that could lead to new U.S. tariffs.

Alden said the increased trade tensions would eventually catch up to the market as Trump undertakes more and more tariff actions.

Ross told a conference call with media this morning that he is looking forward to continuing negotiations.

German magazine 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 NY. The US accounts for 90 percent of Canada's steel exports, however.

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"That Canada could be considered a national-security threat to the United States is inconceivable", said Trudeau, adding that the people of the US are not Canada's target, and that the federal government would have far preferred that its hand wasn't forced. But the process typically takes many months and in some cases, years.

"It's entirely up to U.S authorities whether they want to enter into a trade conflict with their biggest partner, Europe", France's Finance Minister Bruno Le Maire said after meeting with Ross on Thursday.

Sen. Ben Sasse (R-Neb.) has been a critic of the tariffs since they were first announced, arguing that the very concept goes against conservative principles.

"When you look at G7 nations, European allies, Canada, Mexico, it shows that we need to have an opportunity to come together to discuss this directly and firmly and look for opportunities to benefit our citizens, not to harm them", he continued.

"We continue to be quite willing and indeed eager to have discussions with all those parties", Mr Ross said. "We hope that the United States of America will swiftly reconsider its decision, and we will be pressing home the importance of our transatlantic relationship with our counterparts and government figures in Washington, London and Brussels in order to protect the free and fair trade that is the key to our economic future".

Canadian Prime Minister Justin Trudeau has lashed the United States for lumping them with the steel tariff.

Worries about a USA trade war with the European Union weighed on Wall Street stocks. "Make America Great Again" shouldn't mean 'Make America 1929 Again, '" said Sen. Mexico has also vowed tit-for-tat tariffs, although it has not publicly disclosed the items that it will target.

"The unilateral action by the Trump administration severely damages that relationship".

Ross said Trump was living up to his campaign promises.

The steel and aluminum levies and auto import probe could play well with Trump voters in Rust Belt states in the lead-up to congressional midterm elections in November.

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