Trump threatens to retaliate European Union decision regarding steel, aluminium export

President Donald Trump pauses during a meeting in the Cabinet Room of the White House in Washington with members of congress to discuss school and community safety

Rove: Trump's Tariffs Are a 'Misplaced Action,' Trade Wars Are Not Easy to Win

Trump on Thursday said that he would impose a 25 per cent import tariff on steel and 10 per cent on aluminium to protect United States producers.

But critics of Trump's approach have often complained that tariffs and trade wars only drive up costs for domestic consumers, a move that would make German cars more expensive for USA consumers.

Asked about Ryan's position on Monday, Trump told reporters, "No, we're not backing down".

Canada and the European Union said they would bring forward their own countermeasures.

Meanwhile, the World Trade Organization has also warned a trade war is in no one's interests. He added that if price hikes trickle down to American consumers, they would not be significant.

On Sunday, Trump Administration officials said they expect the new duties would go into effect this coming week and there would be no exceptions on any countries - including longtime U.S. allies.

"Tariffs on Steel and Aluminum will only come off if new & fair NAFTA agreement is signed", Trump said.

"Steel tariffs should not surprise anyone".

"We must not let our country, companies and workers be taken advantage of any longer", he said.

Incidentally, the U.S. is the world's largest importer of steel.

And Innes Willox of the Australian Industry Group said: "we can't expect that a dispute that starts with steel and aluminium will just end at that point it will undoubtedly spread across other sectors of the economy". Introducing trade barriers on a tit-for-tat basis has the potential to harm companies on both sides. Mr. Smoot and Mr. Hawley were unavailable for comment.

What have other nations said?

Germany lashed out Friday at U.S. President Donald Trump's decision to slap protectionist tariffs on imported steel and aluminum.

The Europeans have picked a politically astute package - the Harleys are manufactured in Wisconsin, which is House Speaker Paul Ryan's state and bourbon is the prime produce of Kentucky, which is home to Senate majority leader Mitch McConnell.

"We are particularly concerned by any measures which would impact the United Kingdom steel and aluminium industries", the spokesperson said.

The details of Trump's policy - which is not yet official - are expected to be announced next week.

Trump has opposed free trade and globalization since the start of his presidential campaign.

Nonetheless, there is growing bipartisan consensus in Washington, and support within the USA business community, for the US government to counter what are seen as Beijing's predatory industrial policies and market restrictions on foreign firms.

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