Tariffs on Steel & aluminium from EU, Canada and Mexico come to effect from Friday midnight

US Commerce Secretary Wilbur Ross in a telephone briefing on Thursday announced that import tariffs of 25 per cent on steel and 10 per cent on aluminium will be imposed on Canada and Mexico and European Union from Friday. 

The announcement ended months of uncertainty about potential exemptions and indicated stern attitude of the Trump administration and more complications on the trade negotiation processes with these countries. Shares of industrial heavyweights who are major consumers of these metals started falling on the news.

“We look forward to continued negotiations, both with Canada and Mexico on the one hand, and with the European Commission on the other hand, because there are other issues that we also need to get resolved,” Ross said to media.

Canada and Mexico retaliated against the US tariff decisions and the European Union had its own reprisals ready to go. Investors and analysts fear a final global trade war after these retaliations.

The Aluminum Association of North America released a statement expressing its disappointment in the decision and urged for a renewed focus on the real problem of aluminium overcapacity in China caused by rampant and illegal government subsidies in that country.

"Today’s action does little to address the China challenge while potentially alienating allies and disrupting supply chains that more than 97 percent of U.S. aluminum industry jobs rely upon ... While this is an unfortunate outcome, the Aluminum Association will continue its dialogue with the administration on our shared goal of a healthy and sustainable U.S. aluminum industry,” the statement said.