The Japan Times - Canada, Mexico, EU slam 'unjustified' Trump steel tariffs

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Canada, Mexico, EU slam 'unjustified' Trump steel tariffs
Canada, Mexico, EU slam 'unjustified' Trump steel tariffs / Photo: ULISES RUIZ - AFP

Canada, Mexico, EU slam 'unjustified' Trump steel tariffs

Canada, Mexico and the EU on Tuesday slammed US President Donald Trump's "unjustified" decision to impose tariffs on steel and aluminium imports, which has raised fears of a broader trade war.

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Trump signed executive orders to impose 25-percent tariffs on steel and aluminium imports from March 12, triggering a flurry of angry reactions.

The European Union and Canada vowed to retaliate firmly.

Such tariffs would be "entirely unjustified", Prime Minister Justin Trudeau said during a conference on artificial intelligence in Paris.

"Our response will of course be firm and clear," Trudeau told AFP -- with Canadian steelmakers warning of "massive" disruption from Trump's move.

In Mexico -- the third largest steel exporter to the United States after Canada and Brazil -- a top minister urged Trump not to "destroy" four decades of North American trade ties.

Like Trudeau, Economy Minister Marcelo Ebrard said tariffs were "not justified" because the balance of trade in steel and aluminium between Mexico and the United States was in Washington's favour by almost $6.9 billion in 2024.

On the Brussels front, meanwhile, European Commission chief Ursula von der Leyen warned "unjustified tariffs on the EU... will trigger firm and proportionate countermeasures".

EU trade ministers will discuss the 27-country bloc's next steps during a meeting by video link on Wednesday, while Trudeau will separately be meeting top officials in Brussels to confer on strategy.

- UK, Australia contacts -

South Korea -- the fourth biggest steel exporter to the United States -- also vowed to protect its companies' interests.

Acting President Choi Sang-mok said Seoul would seek to reduce uncertainties "by building a close relationship with the Trump administration and expanding diplomatic options".

A spokesman for British Prime Minister Keir Starmer said London was "engaging with our US counterparts to work through the detail" of the tariffs.

Britain's steel industry body called the tariff plan a "devastating blow", while its European counterpart said it would worsen "an already dire market environment".

In Monday's executive order, Trump said "all imports of aluminium articles and derivative aluminium articles from Argentina, Australia, Canada, Mexico, EU countries, and the UK" will be subject to additional tariffs.

The same countries are named in his executive order on steel, along with Brazil, Japan and South Korea.

Trump said he was "simplifying" US tariffs, adding: "It's 25 percent without exceptions or exemptions."

But Australian Prime Minister Anthony Albanese said the United States was considering an exemption for his country after he spoke to Trump by phone.

- 'No need to panic' -

The tariffs also appear to indirectly target China, with the executive orders detailing how certain countries -- particularly Mexico -- were "using" their exemptions to get Chinese imports into the United States.

"Chinese producers are using Mexico's general exclusion from the tariff to funnel Chinese aluminium to the United States through Mexico," it said.

Trump has also signalled he would look at imposing additional tariffs on automobiles, pharmaceuticals and computer chips.

The Republican promised an announcement Tuesday or Wednesday on broader "reciprocal tariffs" to match the levies other governments charge on US products.

During his 2017-2021 presidency, he imposed sweeping tariffs as he believed US industries faced unfair competition from Asian and European countries.

As the EU weighs how to respond to Trump, the bloc could simply revisit its retaliatory tariffs from 2018 -- suspended after a truce with Trump's predecessor.

Those would come back into force when a deadline expires at the end of March, affecting a range of US goods including bourbon whiskey.

Brussels has given no indication as to what action it might take but German Chancellor Olaf Scholz said the EU will present a united front to Washington.

Around a quarter of European steel exports go to the United States, according to consultancy Roland Berger.

"There is definitely no need to panic," an EU diplomat told AFP, qualifying Trump's tariff move as "stupid, but predictable".

The diplomat voiced doubt, however, that "dialogue is enough", saying the United States would most likely "expect gestures or 'deals'."

burs-raz/ec/sbk

T.Shimizu--JT