The United States will face a trade war and retaliation from the European Union, Mexico, Canada and other top allies following imposing tariffs on steel and aluminum imports
US Trade Minister Wilbur Ross told reporters in a directive delivered from Paris, France on Thursday, May 31, 2018, a 25 percent rise in tariffs on steel imports and 10 percent for EU, Canada, and Mexico aluminum will be effective at 4 am, Friday, May 1, 2018, GMT.
"In the future, we will continue negotiations with Canada and Mexico on the other side, as well as negotiations with Europe, because there are a number of issues we need to solve," he said, as quoted by Al Jazeera on Thursday.
Ross explained to reporters, the joint talks between Canada and Mexico in connection with the revision of the North American Free Trade Agreement (NAFTA) take longer than expected. "While talks with Europe there is progress, but not enough to reach an additional agreement," he said through a press conference distance from Paris.
European Commission President Jean-Claude Juncker responded to Ross's announcement by saying the EU would apply retaliation against the United States. "This is a bad day for world trade," Juncker said in a speech in Brussels, Belgium.
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Europe prepares retaliation
"The European Commission has prepared a reaction that will be enforced in accordance with international rules and appropriate time periods," said German finance minister Olaf Scholz.
He said he would notify US Treasury Secretary Steven Mnuchin that the EU would reciprocate sanctions on import tariffs of 25 percent on steel and 10 percent on aluminum, which began enforcing the US for EU products from June 1.
"The EU will react decisively and also smart," he said
He further said the US unilateral decision to impose tariff (import) sanctions is wrong "and in my view, it is also illegal, because we have clear rules on how international tariffs are determined and this is a violation of those rules."
US politicians also criticize Trump's policies
Republican leader Paul Ryan also criticized the additional import tariff. He said in a statement cited by US media that there was "a better way to help American workers and consumers."
"Instead of addressing the real issues in international trade in commodities, today's actions are targeting US allies where we have to work with our allies to overcome unfair trade practices from countries like China," said Paul Ryan.
French President Emmanuel Macron also described the additional import tariff as "illegal" and a "mistake."
Canada also said it would respond firmly to US steps on various products. Canadian Prime Minister Justin Trudeau also called US tariff sanctions "illegal and counterproductive."
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