SEVERE WX : Flood Warning View Alerts
STREAMING NOW: Watch Now

Trump is starting a global trade war

America's biggest allies and trade partners are promising to fight back against US tariffs that threaten to spark a g...

Posted: Jun 1, 2018 2:07 PM
Updated: Jun 1, 2018 2:07 PM

America's biggest allies and trade partners are promising to fight back against US tariffs that threaten to spark a global trade war.

The European Union, Canada and Mexico said Thursday that they will respond to new US tariffs on steel and aluminum with punitive measures targeting American products worth billions of dollars.

Jean-Claude Juncker, president of the European Commission, said the bloc would move ahead with tariffs that are expected to affect roughly $7.5 billion worth of US exports. It will also lodge a case with the World Trade Organization (WTO).

"The United States 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 United States," Juncker said in a statement.

Chrystia Freeland, Canada's Minister of Foreign Affairs, outlined the country's retaliation plan on Thursday. She said that Canada will place tariffs on American goods, including steel and aluminum. Some products will be taxed 10% and others 25%. Up to about $12.8 billion will be subject to the tariffs -- the total value of last year's Canadian steel and aluminum exports to the United States.

During a press conference, Freeland called the retaliation "the strongest trade action Canada has taken in the post-war era."

"Let me be clear," Canadian Prime Minister Justin Trudeau said. "[The US] tariffs are totally unacceptable."

He called them an "affront" to the security partnership between the United States and Canada, adding that it was "inconceivable" that trade with Canada could pose a threat to the United States.

"These tariffs are an affront to the longstanding security partnership between Canada and the United States and, in particular, an affront to the thousands of Canadians who have fought and died alongside their American brothers in arms," Trudeau said.

Thursday marks the beginning of a 15-day consultation period, during which Canadians are encouraged to weigh in on the list, which may be refined.

President Donald Trump and his team say the tariffs are being levied to protect American national security interests. Others do not agree.

"This is protectionism, pure and simple," said Juncker.

Trump's decision to target Europe and America's neighbors comes as trade tensions with China are escalating again after he tore up a truce agreed earlier this month.

The European Union has said that its retaliatory measures, which could be in place as soon as June 20, would include 25% tariffs on American products including motorcycles, denim, cigarettes, cranberry juice and peanut butter.

European officials said the tariffs were designed to be "proportionate."

"Today is a bad day for world trade," said EU trade commissioner Cecilia Malmstr-m. "We did everything to avoid this outcome."

The United States is the world's top steel importer. The value of steel shipped into the United States was just over $29 billion in 2017. Mexico and Canada are both top providers of US steel imports.

The Mexican government said that the US action was not justified, and that it would retaliate with its own comparable penalties on US products including lamps, pork, fruit, cheese and flat steel.

The new US tariffs on steel and aluminum are set to go into effect on Friday.

They could complicate ongoing negotiations between the US, Canada and Mexico on modifications to the North American Free Trade Agreement (NAFTA).

The China front

The Trump administration surprised observers on Tuesday by announcing it would impose tariffs on $50 billion worth of Chinese goods and restrict Chinese investment in the United States.

China has said it is ready to retaliate, the latest escalation of a conflict that has lasted more than a year.

"We want to reiterate that we don't want a trade war, but we aren't afraid of fighting one," said a spokesperson at China's foreign ministry.

Steel industry reaction

Steel industry groups called on politicians in affected countries to defend their companies and workers.

Eurofer, the European Steel Association, asked EU leaders to "react accordingly with appropriate and proportionate measures."

It asked officials to protect the region's steel market, warning that excess steel that would otherwise have been sold in the United States could push down prices at home.

-- Julia Horowitz, Chris Liakos and Danielle Wiener-Bronner contributed reporting.

Lafayette
Partly Cloudy
43° wxIcon
Hi: 68° Lo: 23°
Feels Like: 43°
Kokomo
Clear
36° wxIcon
Hi: 65° Lo: 20°
Feels Like: 29°
Rensselaer
Clear
37° wxIcon
Hi: 66° Lo: 20°
Feels Like: 30°
Lafayette
Partly Cloudy
43° wxIcon
Hi: 66° Lo: 23°
Feels Like: 43°
Danville
Partly Cloudy
41° wxIcon
Hi: 67° Lo: 24°
Feels Like: 35°
Frankfort
Partly Cloudy
37° wxIcon
Hi: 66° Lo: 22°
Feels Like: 31°
Frankfort
Partly Cloudy
37° wxIcon
Hi: 64° Lo: 21°
Feels Like: 32°
Monticello
Clear
40° wxIcon
Hi: 66° Lo: 21°
Feels Like: 35°
Monticello
Partly Cloudy
40° wxIcon
Hi: 66° Lo: 20°
Feels Like: 35°
Logansport
Clear
34° wxIcon
Hi: 66° Lo: 21°
Feels Like: 34°
Warmest day since November ahead Monday.
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 666516

Reported Deaths: 12726
CountyCasesDeaths
Marion912711659
Lake48687890
Allen36102644
Hamilton32445398
St. Joseph30306514
Elkhart25510420
Vanderburgh21326382
Tippecanoe20220205
Johnson16466363
Porter16068281
Hendricks15944302
Clark12060182
Madison11799323
Vigo11685234
Monroe10419164
Delaware9891179
LaPorte9831199
Howard9112201
Kosciusko8597111
Bartholomew7522147
Hancock7462134
Warrick7451153
Floyd7263173
Wayne6661192
Grant6462158
Boone616691
Morgan6129128
Dubois5936112
Dearborn551270
Cass5485100
Marshall5451105
Henry542995
Noble513178
Jackson465567
Shelby463391
Lawrence4195113
Gibson405185
Harrison403265
Clinton397553
Montgomery391684
DeKalb387478
Miami358263
Knox357885
Whitley351238
Huntington349477
Steuben340055
Putnam333960
Wabash333176
Ripley327962
Adams325449
Jasper319143
White298152
Jefferson296274
Daviess285996
Fayette272756
Decatur271688
Greene262680
Posey261432
Wells259075
Scott251850
LaGrange242470
Clay241644
Randolph226077
Spencer219430
Jennings216744
Washington213027
Sullivan203739
Fountain202842
Starke189951
Owen183654
Fulton179737
Jay178728
Carroll176919
Perry174036
Orange171451
Rush165622
Vermillion161543
Franklin159935
Tipton149541
Parke140216
Pike128533
Blackford120627
Pulaski107644
Newton96832
Brown95340
Benton92413
Crawford92213
Martin80314
Warren75914
Switzerland7558
Union67510
Ohio54211
Unassigned0427

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events