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.

West Lafayette
Clear
80° wxIcon
Hi: 81° Lo: 59°
Feels Like: 82°
Kokomo
Few Clouds
74° wxIcon
Hi: 81° Lo: 57°
Feels Like: 74°
Rensselaer
Clear
73° wxIcon
Hi: 79° Lo: 57°
Feels Like: 73°
Fowler
Clear
73° wxIcon
Hi: 81° Lo: 58°
Feels Like: 73°
Williamsport
Clear
78° wxIcon
Hi: 82° Lo: 58°
Feels Like: 80°
Crawfordsville
Clear
76° wxIcon
Hi: 80° Lo: 58°
Feels Like: 76°
Frankfort
Broken Clouds
80° wxIcon
Hi: 80° Lo: 58°
Feels Like: 81°
Delphi
Clear
75° wxIcon
Hi: 84° Lo: 58°
Feels Like: 75°
Monticello
Clear
75° wxIcon
Hi: 84° Lo: 58°
Feels Like: 75°
Logansport
Clear
75° wxIcon
Hi: 80° Lo: 57°
Feels Like: 75°
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 51079

Reported Deaths: 2756
CountyConfirmedDeaths
Marion12019693
Lake5588248
Elkhart353959
Allen2939134
St. Joseph210669
Hamilton1691101
Cass16449
Hendricks1454100
Johnson1340118
Porter82638
Tippecanoe7709
Vanderburgh7276
Clark69544
Madison67464
LaPorte61628
Howard59858
Bartholomew59745
Kosciusko5754
Marshall5449
Noble51328
LaGrange4849
Boone48244
Jackson4783
Delaware47152
Hancock46736
Shelby45425
Floyd40644
Morgan34231
Monroe34028
Grant31826
Dubois3046
Henry30018
Montgomery29720
Clinton2903
White27410
Dearborn25823
Decatur25632
Lawrence25225
Vigo2528
Warrick25029
Harrison21722
Greene19432
Miami1932
Jennings17912
Putnam1738
DeKalb1694
Scott1649
Wayne1546
Daviess15017
Perry14710
Orange13723
Steuben1362
Jasper1352
Ripley1307
Franklin1278
Gibson1202
Wabash1162
Carroll1142
Fayette1067
Whitley1066
Starke1043
Newton10010
Huntington942
Jefferson862
Wells821
Randolph794
Fulton731
Knox710
Jay700
Washington681
Pulaski661
Clay645
Rush613
Posey570
Spencer541
Owen521
Benton510
Sullivan501
Adams491
Brown431
Blackford402
Fountain352
Crawford330
Switzerland320
Tipton321
Parke270
Martin260
Ohio230
Vermillion200
Warren151
Union140
Pike110
Unassigned0193

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