US to impose steel, aluminum tariffs on EU, Canada, Mexico

WASHINGTON — The United States said yesterday it will impose stiff tariffs on steel and aluminum imports from the European Union, Canada, Mexico, reviving fears of a trade war with angry allies and trading partners.

The announcement by Commerce Secretary Wilbur Ross immediately drew retaliatory action by Mexico, Canada and threats of the same by the EU, while France called the tariffs "illegal."

The US action, which takes effect at midnight (0400 GMT Friday), cast a long shadow over a meeting of finance ministers from the Group of Seven top world economies, which opened in Canada.

International Monetary Fund chief Christine Lagarde warned the G7 officials of an erosion of trust amid the trade frictions.

And she said the action will "distort and damage and disrupt supply chains which have been established now for decades."

The White House, however, said the tariffs first imposed in March – 25 percent duties on steel and 10 percent on aluminum – have had "major, positive effects on steel and aluminum workers and jobs."

And the administration's actions "underscore its commitment to good-faith negotiations with our allies to enhance our national security while supporting American workers."

But instead of dialogue, the announcement sparked immediate angry reactions from key allies.

French President Emmanuel Macron who has enjoyed a warm relationship with Trump, "deplored" the US move declaring it "illegal."