US Trade Tariffs: Trump's plan for steel, aluminum tariffs prompts global backlash

World
Europe

Now for an update on the financial markets. The week ended with a global backlash and jittery markets, a day after the US announced its plan for tariffs on steel and aluminum imports. The US president is not backing down on his trade rhetoric going as far to say 'trade wars are good'. CGTN's Roee Ruttenberg has more.

U.S. President Donald Trump has often accused foreign importers of dumping cheap metals in the U.S. He says they've basically decimated American industry, and Washington must fight back.

But Trump's announcement of new tariffs on foreign steel and aluminum has been largely condemned around the world as protectionist and dangerous.

China urged the U.S. to show restraint.

HUA CHUNYING SPOKESPERSON, CHINESE FOREIGN MINISTRY "Steel and aluminum industries in all countries are facing difficulties. Right now, the very foundation of the global economic recovery is not stable. All countries should work together to face the problem and cooperate to examine ways to solve the issue, and not unilaterally adopt restrictive trade measures."

China's not even among the top 10 US importers of steel. The top position goes to America's neighbor to the north.

Canada also buys half of all U.S. steel. And still, according to Ottawa, Washington enjoys a $2 billion steel trade surplus.

FRANCOIS-PHILIPPE CHAMPAGNE CANADIAN TRADE MINISTER "Canada buys more U.S. steel than any country in the world. And any suggestion that Canadian steel would pose a threat to national security is completely and obviously misplaced."

Canada and Mexico -- the U.S.'s two NAFTA partners -- are hoping for exemptions from the tariffs .. which also threatened to derail ongoing renegotiations of a massive trilateral trade deal that covers a lot more than metals.

Across the Atlantic, European officials condemned the move. And business leaders called for an immediate response.

HANS JUERGEN KERKHOFF PRESIDENT, GERMAN STEEL ASSOCIATION "There are several WTO instruments with which we can react. What's very important for us is that the reaction be quick and resolute and that the European steel market does not have to foot the bill for this American protectionism."

Fears of an escalating trade war rattled Europe, and also Asia.

Officials from Japan -- a U.S. military ally -- rejected U.S. suggestions that its steel exports presented a threat to American national security. This, as Japanese steel and automakers called Trump's tariff plans regrettable.

KOSEI SHINDO PRESIDEMT, NIPPON STEEL & SUMITOMO METAL CORP "I'm worried that steel products shut out by the U.S. may head to Asia instead, and lower steel prices here."

ROEE RUTTENBERG WASHINGTON, DC "Some of these players are now warning: they may soon start implementing their own safeguards. Like Europe did in 2002, after then-U.S. President George W. Bush imposed steep steel tariffs that drove excess metal their way. They blocked it, and filed suit.

Bush eventually removed the tariffs, after the World Trade Organization ruled against the U.S. and threatened it with the largest-ever sanction against a member state -- $2 billion.

Roee Ruttenberg, CGTN, in Washington.