Trudeau calls Trump from smelter to talk tariffs

Republican Senator Jeff Flake of Arizona is pushing legislation in the U.S. Congress to block Donald Trump’s tariffs | Alex Wong  Getty Images

Republican Senator Jeff Flake of Arizona is pushing legislation in the U.S. Congress to block Donald Trump’s tariffs | Alex Wong Getty Images

European Union trade commissioner Cecilia Malmstrom said on Sunday that EU and Japanese officials had held a "frank discussion" with U.S. trade representative Robert Lighthizer in Brussels, according to the Financial Times.

Trade Commissioner Cecilia Malmstrom told the European Union legislature on Wednesday that while the 28-nation European Union would continue to seek exemption from the USA measure that could kick in next week, it will prepare countermeasures to hit US exports.

The announcement of duties of 25 percent on imported steel and 10 percent on aluminium has stung the European Union, coming as a surprise to United States allies and to many in Washington.

Trump's announcement on tariffs underlined concerns about rising U.S. protectionism, which has sparked bouts of turmoil in global financial markets over the past year as investors feared a damaging trade spat will shatter a synchronized uptick in world growth. Executives from both U.S. Steel and Nucor, who had flanked Trump at the White House signing ceremony, wasted no time in lauding the tariffs and their authorization. Talks would continue next week.

"We Europeans must band together resolutely and try to convince our American partners", Spahn told newspapers of the Funke media group to be published on Monday.

But economists said the net impact of the tariffs on the USA economy is negative, because they benefit just a small slice of the economy, while harming almost everyone else.

"He only explained the schedule and the procedures", he said. "As President Trump has said, we hope for a successful completion of these talks, and we would prefer a three-way, tripartite agreement". "We will look at the impact onJapanese businesses and make a final decision".

Canada and the United States share the world's longest secure border, with approximately 400,000 people, and goods and services worth 2.5 billion U.S.dollars crossing daily.

"We can not get our product in [to the European Union], Trump said in a TV interview in late January".

He said other countries could be spared the tariffs if they can convince the US government that their steel and aluminum exports don't threaten American industry.

Lighthizer's office declined to comment.

The three parties did agree on joint steps to tackle global steel over capacity and distorted market practices, including stronger rules on subsidies and more sharing of information about market abuse.

Moreover, both Alcoa (aluminum) and Stelco (steel) are major players in these two industrial sectors - and they are owned by USA commercial interests.

As many as 107 House Republicans expressed deep concerns last week, writing in an open letter to the president that the "new taxes in the form of broad tariffs would undermine" the "remarkable progress" made by the tax overhaul.

Commission Vice President Jyrki Katainen warned Washington on Friday not to expect any concessions to win an exemption. But if the negotiations do not proceed smoothly, the U.S.' trade actions might send shockwaves throughout the global economy.

But the U.S. would like Australia to carry out such patrols, which would mean sailing within 12 nautical miles of territory Beijing has unilaterally claimed, including islands it has built, to demonstrate Australia does not recognise Beijing's claims under global law.

Critics say Trump's tariffs on steel and aluminum coming into the country will usher in a trade war, and it will harm America.

It has already started monitoring incoming metal flows to see whether a surge occurs. The U.S. gets clobbered at the WTO, just like it does at the UN. Until last year's tax reform bill, the US had the highest corporate tax rates in the developed world.

European steel and aluminum associations have warned that the US tariffs could cost their sectors thousands of jobs.

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