US Dollar Stable as Trump Administration Greenlights Tariffs

US Dollar Stable as Trump Administration Greenlights Tariffs

US Dollar Stable as Trump Administration Greenlights Tariffs

In Canada, Prime Minister Justin Trudeau called the USA tariffs "totally unacceptable".

The United States said on Thursday it would impose harsh tariffs on steel and aluminum imports from the European Union, Canada, Mexico at 0400 GMT on Friday - another move sure to anger Washington's trading partners.

They said the announcement was planned for Thursday morning in Washington but that the timing could still change.

And he repeated that while he was looking forward to continuing negotiations, the USA decision was based on national security grounds.

European Union trade commissioner Cecilia Malmstrom said: "Now (Frankfurt: 11N.F - news) that we have clarity, the EU's response will be proportionate and in accordance with WTO rules".

Similarly, EU Trade Commissioner Cecilia Malmstrom and Japanese Economy, Trade and Industry Minister Hiroshige Seko put out a joint statement on U.S. tariff efforts, saying "This would cause serious turmoil in the global market and could lead to the demise of the multilateral trading system based on WTO rules".

Noting her discussions with US officials, she said.

But The Wall Street Journal cited people familiar with the matter saying a last minute deal appeared unlikely, and the tariff announcement could come as early as Thursday.

U.S. Commerce Secretary Wilbur Ross, in announcing the tariffs, said NAFTA talks are "taking longer than we had hoped" to wrap up.

Fears of a global trade war are already weighing on investor confidence and could hinder the global economic upturn.

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.

Sears to close 4 MI stores September
In this Thursday, March 29, 2018, photograph, the sign hangs over a set of doors leading to a Sears store in Littleton, Colo. In a search for more cash, the company is now weighing whether or not to sell off its Kenmore and DieHard brands.

The three close USA allies had been part of a small group of foreign governments that received temporary exemptions from the tariffs, until trade deals could be signed.

"It is totally unacceptable that a country is imposing unilateral measures when it comes to world trade". "Nothing", French President Emmanuel Macron said in an impassioned speech yesterday.

Macron further said, "These solutions might bring symbolic satisfaction in the short term...."

"There are no winners in a trade war, which will damage prosperity on both sides of the Atlantic".

"It is difficult to see what good can come of these tariffs, USA steel consumers are already reporting price increases and supply chain disruption and with some half billion dollars of steel exported from the United Kingdom to U.S. previous year, United Kingdom steel producers are going to be hit hard". That hurts the companies and can lead to more expensive consumer prices, economists say.

NAFTA talks continue, with a deal needed probably within days to have any hope of passing the current USA congress and with Mexican elections one month away.

"What they can do, we're able to do exactly the same", he said. He noted that "China has not used that as an excuse not to negotiate".

However, Economy Minister Peter Altmaier appeared with Le Maire in Paris on Wednesday, pledging a unified line.

Macron also proposed to start negotiations between the USA, the EU, China and Japan to reshape the World Trade Organization to better regulate trade. "The Administration will continue discussions with them and remains open to discussions with other countries".

The head of the World Trade Organization is expressing "very real concern" about rising trade tensions and the risk of escalation.

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