Trade Tensions: EU threatens US with $300 billion in new tariffs

World
Europe

02:10

Blowback from the United States tariff policy is increasing from across the Atlantic. The European Union is threatening Washington with 300 billion dollars in fresh tariffs. Canada and Russia are also hitting back. Chuck Tinte has more.

The trade spat is going beyond tit-for-tat. And everyone's digging deep into their trenches. Following on Washington launching a probe to determine if car imports threaten national security. The European Commission had formally written to the US Commerce Department.

DANIEL ROSARIO EUROPEAN COMMISSION SPOKESMAN "So we understand that we should make use of all the tools at our disposal to try to prevent this investigation to come to a similar outcome."

The EU fears this could lead to Washington imposing tariffs on European car imports after the bloc retaliated against Trump's tariffs on steel and aluminum. The EU is already warning of possible counter-measures which could affect up to 300-billion dollars worth of US exports.

Meanwhile, Canada implemented import tariffs on American goods worth almost 13 billion dollars. Canada has targeted items intended to maximize the political pain on states that voted for Donald Trump. At a grassroots level, Canadians are also trying to make a statement with their wallets, by boycotting American goods and travel to the country.

ADAM RATHWELL CANADIAN BOYCOTTING US "I want the United States to be better. I want us to be friends again as countries. I want to go to the States but right now I just can't. My conscience and my morals will not let me go there."

Russia is also joining other WTO members in the fight against US tariffs. It has asked the US for consultations over tariffs of 25 percent on steel and 10 percent on aluminium. Under WTO rules, if the consultations don't happen in 60 days, Russia could then ask the organization to set up a dispute panel, triggering a long legal battle. Chuck Tinte, CGTN.