WASHINGTON, March 13 — Donald Trump yesterday threatened to escalate a global trade war with further tariffs on European Union goods, as major US trading partners said they would retaliate for trade barriers already erected by the US president.
Just hours after Trump's 25 per cent duties on all US steel and aluminium imports took effect, Trump said he would impose additional penalties if the EU follows through with its plan to enact counter tariffs on some US goods next month. "Whatever they charge us, we're charging them," Trump told reporters at the White House.
Trump's hyper-focus on tariffs has rattled investor, consumer and business confidence and raised recession fears. He also has frayed relations with Canada, a close ally and major trading partner, by repeatedly threatening to annex the neighbouring country.
Canada, the biggest foreign supplier of steel and aluminium to the United States, announced 25 per cent retaliatory tariffs on those metals along with computers, sports equipment and other products worth US$20 billion (RM90 billion) in total. Canada has already imposed tariffs worth a similar amount on US goods in response to broader tariffs by Trump.
"We will not stand idly by while our iconic steel and aluminum industries are being unfairly targeted," Canada's Finance Minister Dominic LeBlanc said.
Canada's central bank also cut interest rates to prepare for economic disruption.
Trump's action to bulk up protections for American steel and aluminum producers restores effective tariffs of 25 per cent on all imports and extends the duties to hundreds of downstream products, from nuts and bolts to bulldozer blades and soda cans.
US Commerce Secretary Howard Lutnick said Trump would impose trade protections on copper as well.
A Reuters/Ipsos poll found 57 per cent of Americans think Trump is being too erratic in his effort to shake up the US economy, and 70 per cent expect the tariffs will make purchases more expensive.
The escalation of the US-Canada trade war occurred as Prime Minister Justin Trudeau prepares to hand over power to his successor Mark Carney.
"I'm ready to sit down with President Trump at the appropriate time, under a position where there's respect for Canadian sovereignty and we're working for a common approach," Carney said while touring a steel plant in Ontario.
Other Canadian officials are due to meet with US officials in Washington today.
The US national anthem has been booed at hockey games and some stores removed US products from their shelves. Travellers are steering clear of the United States, with bookings down 20 per cent from a year ago.
— Reuters
