Trump to remove tariff exemption from EU, Canada, Mexico

Jean-Claude Juncker was speaking in Strasbourg this morning

He says the talks are taking longer than the US had hoped.

Other key European politicians are already threatening to retaliate in what could be an early salvo in a nascent trade war.

During a speech in Brussels, Jean-Claude Juncker, president of the European Commission, promised to announce retaliatory sanctions later on Thursday.

They include a 25 percent tariff on steel imports and a 10 percent tariff on aluminium imports.

President Trump initially announed the tariffs in March, but had temporarily exempted Canada and Mexico while they were negotiating the North American Free Trade Agreement. "There is no longer a very precise date when they may be concluded and therefore they were added into the list of those who will bear tariffs".

Speaking during a television interview, Moises Kalach also said that Economy Secretary Ildefonso Guajardo has managed to pass a motion in the Senate stipulating that any unilateral protectionist measures imposed would be met with proportionate, reciprocal measures from Mexico.

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"This is dumb. Europe, Canada, and Mexico are not China, and you don't treat allies the same way you treat opponents", said Sen. "Make America Great Again" shouldn't mean 'Make America 1929 Again".

So far, only South Korea has received a permanent exemption from the steel tariffs, in exchange for agreeing to a quota - which limits the amount of steel it can send to the United States each year.

"The UK and other European Union countries are close allies of the United States and should be permanently and fully exempted from the American measures on steel and aluminium".

During a conference call early Thursday, Ross shrugged off questions about the USA facing possible retaliation, or whether the move would negatively affect the G7 meeting.

European Union's trade commissioner Cecilia Malmstrom had a meeting scheduled with the US Trade Representative Robert Lighthizer in Paris on Thursday among other worldwide trade chiefs. Noting her discussions with US officials, she said.

The United States' launch of a tariff probe into vehicle imports last week was also seen as a move created to pressure its NAFTA partners in negotiations that have been contentious on issues including rules of origin and wages as they apply to the automotive sector.

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Shares of American steel companies Steel Dynamics, AK Steel and US Steel gained between 3.4 percent and 7.4 percent and aluminum producer Alcoa surged 3.4 percent. "We will defend the UK's interests robustly". "I have argued for the European Union and the USA to engage in a positive trans-Atlantic trade agenda, and for the European Union to be fully, permanently and unconditionally exempted from these tariffs".

According to the Associated Press, French President Emmanuel Macron alluded to Trump's leadership style directly in slamming the pending tariffs in a Wednesday speech.

The EU had earlier agreed to discussions on increased market access for USA products but only if the US first agreed to a permanent exemption from the steel tariffs.

The head of the Aluminum Association of Canada says the 10 per cent tariffs to be imposed Friday on his industry will cause the most harm to Americans who will face higher prices for goods made from the metals, but could also damage smaller Canadian suppliers.

"There can be negotiations with or without tariffs in place. These actions have thrown all of that up in the air".

Despite media speculations that the United States could possibly introduce long-term exemptions from the tariffs for its close allies, Trump has opted for moving ahead with steel and aluminium duties.

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