Published: Wed, March 07, 2018
Medical | By Marta Holmes

Mexico vows United States steel tariff retaliation

Mexico vows United States steel tariff retaliation

The EU has warned Donald Trump that it will launch tough new levies on USA exports of bourbon, peanut butter and motorbikes if he pushes forward with plans to impose steel and aluminium tariffs.

On Monday, Trump moved to hold the trade talks hostage to the tariffs, tweeting: "Tariffs on Steel and Aluminum will only come off if new & fair NAFTA agreement is signed".

Separately, major trading partners of the United States expressed both commercial and systemic concerns about its tariffs plan and said they feared tit-for-tat trade actions, a World Trade Organization (WTO) spokesman said.

Adam said it was still unclear what exactly the tariffs would look like but warned there was a risk that the European market might be forced to absorb imports originally meant for the US market as a result.

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"We can say to a given governor, this company exports 90 percent of its production to Mexico, and it's going to be affected", he told Televisa.

Cecilia Malmström, the EU's trade commissioner, has insisted that the planned retaliatory measures would be "completely legal" and said that the European Union would "calibrate" its response in accordance with WTO rules.

European Council President Donald Tusk has hit back at the US President, saying "trade wars are bad and easy to lose" as the bloc prepared to retaliate against Donald Trump's president's planned steel and aluminium tariffs.

"The truth is quite the opposite".

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"We do not want this to go out of proportion, but. if it does happen we will have to take measures to protect European jobs".

Trump didn't specify in his announcement which countries the tariffs would apply to.

That prompted Trump to fire back a threat to tax cars from the European Union, further fueling fears of a full-on transatlantic trade war erupting.

Both the United States invocation of national security and the EU's rejection of Washington's argument would be rare manoeuvres in WTO history and be a test of the trade arbiter's ability to resolve disputes between its largest members.

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White House trade adviser Peter Navarro ripped the WTO in an interview on Sunday. Therefore the current signals from the US make me anxious.

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