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

World
Europe

02:06

The US's steep tariffs immediately aroused criticism from their closest allies. Leaders from affected nations say they will impose tit-for-tat tariffs on US imports, ranging from metal to agricultural products. Feng Yilei has the details.

On the verge of a global trade war. The latest US tax measures have left its allies worried.

AXEL EGGERT, DIRECTOR GENERAL EUROPEAN STELL ASSOCIATION "There is a real risk that we will have to reduce production in the European Union up to 10 million tons which could affect up to 20,000 jobs in the European steel industry alone."

The EU and its members vowed to retaliate.

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

EMMANUEL MACRON FRENCH PRESIDENT "As it is illegal, we will appeal and we will bring answers."

Macron said the US decision creates "economic nationalism" that leads to trade wars.

Close neighbor and ally Canada is both confused and angry.

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

Canada is imposing dollar-for-dollar tariffs on up to 12 billion US dollars worth of American products, effective from July 1st.

CHRYSTIA FREELAND CANADIAN FOREIGN MINISTER "This is the strongest trade action Canada has taken in the post war era. This is a very strong response."

Canada and the EU are the top two steel exporters to the US market, followed by South Korea and Mexico. South Korea has conceded by putting limits on its exports.

Mexico says the US tariffs cannot be justified. The country's Economy Ministry announced equivalent tariffs on US goods ranging from steel to apples. Mexico together with Canada is also being pressured by the US to revise the NAFTA trade deal. Feng Yilei, CGTN.