Mexico and European Union retaliate against Trump’s metal tariffs, promising new taxes
This is going to cause the markets to go down in the short term. Trade wars are not good for anyone, except to be used to get what you want in trade negotiations. And I only favor tariffs to counter dumping, which is illegal.
President Trump Thursday imposed tariffs on imported steel and aluminum from the European Union, Canada and Mexico, triggering immediate retaliation from U.S. allies against American businesses and farmers.
The tariffs — 25 percent on steel and 10 percent on aluminum — will take effect at midnight Thursday, marking a major escalation of the trade war between the U.S. and its top trading partners.
In response, the E.U. said it would impose duties “on a number of imports from the United States,” referring to a 10-page list of targets for retaliation it published in March, which included Kentucky bourbon and Harley-Davidson motorcycles. European leaders also vowed to proceed with a complaint to the World Trade Organization.
“This is protectionism, pure and simple,” said Jean-Claude Juncker, president of the European Commission.
The Mexican government said it would levy import taxes on U.S. exports of pork bellies, blueberries, apples, grapes, certain cheeses, and various types of steel.
President Trump had announced the tariffs in March, but gave several U.S. allies temporary exemptions while they negotiated potential limits on shipments to the United States.