US Tariffs: Allies cry foul, vow to retaliate on steel & aluminum taxes

World
Europe

02:14

Washington's steep tariffs immediately roused criticism from their closest allies. Leaders from affected nations say they will impose tit-for-tat tariffs on US imports, from metal to agricultural products. Natalie Pang has the details.

Close allies are now engaged in a fight as the US slapped tariffs non-discriminative.

JUSTIN TRUDEAU CANADIAN PRIME MINISTER "These tariffs are totally unacceptable. For 150 years, Canada has been the United States' most steadfast ally."

Canada may suffer the most, as it is the largest steel exporter to the US market, followed by the European Union, South Korea and Mexico.

In what its foreign minister says is Canada's strongest trade action since the post-war era, Ottawa is imposing retaliatory dollar-for-dollar tariffs on US products, valued at 12 billion US dollars. The tax hike will take effect from July 1st.

CHRYSTIA FREELAND CANADIAN FOREIGN MINISTER "This is a very strong Canadian action in response to a very bad US decision."

Mexico, another close neighbor and ally, also condemns the extra taxes. It retaliated almost immediately, targeting pork, apples as well as steel - products from US heartland states which supported Trump in the 2016 election.

The US tariffs also set off shockwaves across the Atlantic.

French President Macron describes the move as "economic and commercial nationalism", and warns "economic nationalism leads to war".

An official says 20,000 jobs will be affected in the European steel industry alone. EU leaders are vowing countermeasures.

JEAN-CLAUDE JUNCKER PRESIDENT, EUROPEAN COMMISSION "We will immediately introduce a settlement dispute on the WTO and will announce in the coming hours counterbalancing measures."

Analysts fear the latest US tax measures will not ease trade frictions, but instead, push the world closer to an all-out war. Natalie Pang, CGTN.