United States stocks rattled by trade concerns


The EU is drawing up retaliatory measures against leading US brands, such as Levi's and Harley-Davidson, after US President Donald Trump threatened a trade war with plans for tariffs on steel and aluminum, European Commission President Jean-Claude Juncker said on Friday.

Industries that consume aluminum and steel products add far more to U.S. economic output than companies which produce these metals. The latest round of a almost year-long renegotiation effort is concluding this week in Mexico City.

Trump announced the move on Thursday, saying he wants to slap a 25 per cent tariff on steel imports and a 10 per cent duty on aluminum.

"Also, Canada must treat our farmers much better".

Foreign Secretary Luis Videgaray tweets that "dealing with drug trafficking is a shared responsibility between Mexico and the U.S". "Millions of people addicted and dying", Trump tweeted.

The tariffs will be made official in the next two weeks, White House officials said Monday, as the administration defended the protectionist decision from critics in Washington and overseas.

Trump has touted the tariffs as a way to revive the US steel and aluminum industries, in keeping with his promises both on the campaign trail and in the White House that he will seek deals that better favor American workers. After that, USA administrations imposed protectionist policies, only to see global competitors adapt and the US share of global steel production decline.

Republican South Carolina Sen. Canadian Prime Minister Justin Trudeau said that the United States tariffs would be "absolutely unacceptable" and China too expressed "grave concern" over the plans, The Guardian reported.

"Such measures would inflict pain on worldwide trade flows and our industry, but above all hurt workers and consumers on both sides of the Atlantic", German Chancellor Angela Merkel's spokesman Steffen Seibert said Monday.

If Canadians are hoping to be spared from American tariffs, they may be disappointed.

He noted that the steel and aluminum taxes would hurt the manufacturing and construction sectors, which are major users of aluminum and steel.

Resolution calls for withdrawal of U.S. forces from conflict in Yemen
It was not immediately clear how the resolution would move forward without support from the Republican leadership. Lawmakers have argued for years that Congress has ceded too much authority over the military to the White House.

Trump is expected to formally announce the tariffs measure next week. Republican lawmakers and business groups warned that move could backfire, forcing the United States to take an economic hit.

Navarro tells "Fox and Friends" Monday: "There are virtually no costs here". Canada would say, 'National security exemption?

Meanwhile, our trading partners are lining up, itching to retaliate. But rarely does a debate open so wide a rift between a president and his party - leaving him nearly exclusively with support from his ideological opposites.

The looming trade war comes as negotiations over a US-UK Open Skies agreement appear to have got off to a bad start.

The current tax on European cars was decided through complicated worldwide negotiations so to increase it the President may have to pull the United States out of the World Trade Organisation.

"Ironically, American companies who will feel the negative impact of the tariffs can actually move their operations to another country, such as Canada, and not face new tariffs on the sale of their products. So I actually think this is long overdue", said Democratic candidate Conor Lamb.

Canada's Finance Minister Bill Morneau reacted to Trump's tweets on Monday saying the country is negotiating NAFTA with a partner that has "changed the terms of the discussion".

But Trump's GOP allies on Capitol Hill have little use for the tariff approach.

US President Donald Trump's vow to step up protectionist policies to boost the US vehicle industry could lead to a 10-percent drop in profits for German automakers, Germany's Center for Automotive Research (CAR) has warned.

Eight days of talks in Mexico's capital failed to make headway on new rules governing the content of products made in North America, which has been one of the most contentious issues in the talks.