U.S. imposes hefty tariffs on steel, aluminium imports from key allies

“The fact that we took a tariff action does not mean there can not be a negotiation”.

After months of speculation about whether or not the Trump administration would take a hard line approach on trade with the United States’ closest allies, Secretary of Commerce Wilbur Ross told reporters Friday that Trump decided not to extend exemptions for Canada, the European Union and Mexico.

“We have to believe that at some point their common sense will prevail”, Trudeau told reporters in Ottawa Thursday.

American consumers could face price rises for products ranging from jeans to peanut butter as the global community considers countermeasures in response to USA trade tariffs.

The European Union is planning retaliatory tariffs on USA steel and food goods in the coming weeks, once it calculates the exact cost to European Union companies of the US tariffs.

Australia is exempt from the tariffs after Prime Minister Malcolm Turnbull secured a deal to avoid the U.S. trade measures in March.

Industry experts have warned that EU retaliation could encourage the Trump administration to strike back with more trade barriers on items like European cars.

Ross said NAFTA negotiations can continue even if retaliatory measures are taken.

Trudeau said he was prepared to travel to Washington this week to try and finalize a rework of the North American Free Trade Agreement, but Pence – in the phone call – said a meeting would only occur if the “sunset” provision was agreed to in advance. There’s potential “flexibility” in the future because the president has the power to increase or cut tariffs, remove them, or enact quotas, he said.

In Europe, Juncker promised “counter-balancing measures” soon. “These tariffs are totally unacceptable”.

On April 30, he extended for 30 days the temporary exemption from the steel and aluminum tariffs for Canada, Mexico and the European Union to allow for further negotiation.

Those temporary waivers were extended through May while the White House sought negotiated concessions.

Brussels submitted a list to the WTO of United States products that could be slapped with punitive import duties. Now that the U.S.’s three key allies are subject to the tariffs, they are looking at what to do next. In March a 10-page list, which included kitchenware, footwear and corn, was published by the EU. United States denim, bourbon, motorcycles, peanut butter, motor boats and cigarettes are also in the firing line.

Britain issued a statement saying, in part: “We will defend the UK’s interests robustly”.

Macron called the tariffs “illegal” and a “mistake”, and planned to speak with Trump later on Thursday, local time.

The American president has since responded to Trudeau’s sharp jabs. “This is exactly what happened in the 1930s (prior to World War II)”.

EU members have given broad support to a European Commission plan to set duties on 2.8 billion euros ($A4.3.billion) of United States exports if Washington ends the tariff exemption.

Mexico said it would penalise U.S. imports including pork bellies, apples, grapes, cheeses and flat steel.