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Trump threatens further tariffs

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WASHINGTON:

Donald Trump threatened on Wednesday 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% 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.

Trump’s hyper-focus on tariffs has rattled investor, consumer and business confidence and 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% retaliatory tariffs on those metals along with computers, sports equipment and other products worth $20 billion in total. Canada has already imposed tariffs worth a similar amount on US goods in response to broader tariffs by Trump. Canada’s central bank also cut interest rates to prepare for economic disruption.

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