WTO chief warns US tariffs could bring potential ‘domino effect’

The United States is talking with the European Union on the new steel and aluminum tariffs while indicating there is so far no change on the China front.

US President Donald Trump signed orders on Thursday to impose 25 percent tariff on steel imports and 10 percent on aluminum imports from March 23, but he made exemptions for Mexico and Canada, two of countries that are renegotiating North American Free Trade Agreement and possible exceptions for other US military allies.

Trump first announced the tariffs on March 1 after a Commerce Department investigation under Section 232 of the US Trade Expansion Act of 1962 found the imports threatened to damage US national security.

White House Press Secretary Sarah Sanders, asked on Monday if Trump will follow his tariff measures on China, said the administration’s position

All these have been seen as a possible message for the two countries to reach a solution and avoid a trade war that many are worried.

China’s Minister of Commerce Zhong Shan said on Sunday that China has no intention of starting a trade war with the US, but added that the country can cope with any challenge and will defend its national interests.

“Trade wars can result in no winners, only disasters for the two countries and the rest of Xinhua contributed to this story.