Countries around the world are fighting back against President Donald Trump's decision to slap tariffs on steel and aluminum imports, announcing retaliatory countermeasures and warning that the USA plan will hurt us consumers.
She warned that the decision would effect U.S. defence projects.
European Union trade chief Cecilia Malmstrom says that the Trump administration's tariffs on steel and aluminum exports to the United States will hurt global growth.
Brussels is also preparing to slap tariffs on USA products including bourbon, motorcycles and blue jeans worth up to €2.8 billion (S$4.4 billion). The US President had also threatened to respond to any new EU trade barriers with a tax on cars produced by European automakers.
In the end, "this fight is not going to be resolved through diplomacy or at the G7 next week; it's going to be political developments in the United States", he added, noting that Canadian tariffs on USA consumer goods aimed to sway voters in key districts in the upcoming U.S. mid-term elections. The U.S. team also wants to secure greater intellectual property protections and an end to Chinese subsidies that have contributed to overproduction of steel and aluminum.
The tariffs of 25 per cent on steel products and 10 per cent on aluminium, which affect the EU, Canada and Mexico, came into effect on Friday.
Ross is "going there to tread water", the person said, declining to be identified due to the sensitivity of the matter.
The EU is set to retaliate with tariffs on a range of US goods from Harley-Davidson HOG.N motorcycles to blue jeans and bourbon whiskey. The issue about tariffs being slapped on the European Union creates a problem.
The EU's trade chief, Cecilia Malmstrom, said that the US decision to impose tariffs "is further weakening the Trans-Atlantic relations".
"We regret that our common work together at the level of the G7 has been put at risk by the decisions taken by the American administration on trade and on tariffs", he said. The metal tariffs will come into force at midnight (04:00 GMT) on Friday.
The United States was singled out by some of its closest allies Saturday over the imposition of tariffs that they warn will undermine open trade and weaken confidence in the global economy.
Justifying US steel tariffs based on national security concerns is "grotesque", according to Germany's steel industry association.
She also announced a case against China at the WTO over the alleged infringement of intellectual property rights, saying the simultaneous action showed that the European Union was being evenhanded. Canada unveiled a package of counter-tariffs on USA imports valued at Can$16.6 billion (US$12.8 billion).
She said: "This is further weakening the transatlantic relations and it also increases the risk of severe turbulences in the markets globally". "The US economy will suffer as much as any other economy".
The EU has already issued a 10-page list of tariffs on U.S. goods ranging from Harley-Davidson motorcycles to bourbon.
The White House released a statement from Trump Thursday night saying of NAFTA, "Earlier today, this message was conveyed to Prime Minister Justin Trudeau of Canada: The United State (sic) will agree to a fair deal, or there will be no deal at all".