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| Trump steel tariffs: Trading partners threaten retaliation | Trump steel tariffs: Trading partners threaten retaliation |
| (about 2 hours later) | |
| The main trading partners of the US have reacted angrily after President Donald Trump announced plans to impose tariffs on steel and aluminium imports. | The main trading partners of the US have reacted angrily after President Donald Trump announced plans to impose tariffs on steel and aluminium imports. |
| Canada and the EU said they would bring forward their own countermeasures to the steep new tarrifs. | |
| Mexico, China and Brazil have also said they are weighing up retaliatory steps. | Mexico, China and Brazil have also said they are weighing up retaliatory steps. |
| Mr Trump tweeted that the US had been "decimated by unfair trade and bad policy". He said steel imports would face a 25% tariff and aluminium 10%. | |
| However, critics argue that the tariffs would fail to protect American jobs and would ultimately put up prices for consumers. | However, critics argue that the tariffs would fail to protect American jobs and would ultimately put up prices for consumers. |
| The news sent shares in Asia down on Friday, with Japan's benchmark Nikkei 225 losing more than 2% by mid-morning. | |
| Shares in Japan's car-making giant Toyota were down more than 2% and Nippon Steel stocks down more than 4%. | |
| Toyota said the US decision would "adversely impact automakers, the automotive supplier community and consumers". | |
| What has the political reaction been? | |
| European Commission President Jean-Claude Juncker said the tariffs would put thousands of European jobs at risk. | |
| "We will not sit idly while our industry is hit with unfair measures," he said. "The EU will react firmly and commensurately to defend our interests." | "We will not sit idly while our industry is hit with unfair measures," he said. "The EU will react firmly and commensurately to defend our interests." |
| In Canada, the largest supplier of steel and aluminium to the US, trade minister Francois-Philippe Champagne said any tariffs would be "unacceptable". | In Canada, the largest supplier of steel and aluminium to the US, trade minister Francois-Philippe Champagne said any tariffs would be "unacceptable". |
| Minister of Foreign Affairs Chrystia Freeland said Canada would take "responsive measures" if restrictions were imposed but did not give details. | Minister of Foreign Affairs Chrystia Freeland said Canada would take "responsive measures" if restrictions were imposed but did not give details. |
| Brazil, also a large steel exporter to the US, threatened "multilateral or bilateral" action to protect its interests. | Brazil, also a large steel exporter to the US, threatened "multilateral or bilateral" action to protect its interests. |
| Germany's steel industry federation, WV Stahl, said the US measures violated the rules of the World Trade Organization and would have a major impact on Germany's steel market. | Germany's steel industry federation, WV Stahl, said the US measures violated the rules of the World Trade Organization and would have a major impact on Germany's steel market. |
| How has China reacted? | How has China reacted? |
| The country which produces more than half the world's steel gave no immediate official response but there had already been indications it would consider some sort of retaliation. | The country which produces more than half the world's steel gave no immediate official response but there had already been indications it would consider some sort of retaliation. |
| Little Chinese steel directly reaches US ports, Reuters news agency notes, because of previous anti-dumping duties, designed to prevent countries from selling their products at prices deemed unfairly low. | |
| But US steel industry executives say Chinese steel is still widely shipped to the US through third countries. | |
| President Xi Jinping's top economic adviser, Liu He, met the Trump administration on Thursday for "frank and constructive" talks, a White House official said. | President Xi Jinping's top economic adviser, Liu He, met the Trump administration on Thursday for "frank and constructive" talks, a White House official said. |
| How did other markets respond? | |
| In South Korea, America's third largest source of steel, shares in steelmaking giant Posco were down more than 3.5%. The benchmark Kospi index was down close to 1.5%. | |
| In China, investors seemed less concerned about the new tariffs. Hong Kong's Hang Seng index was down 1.7%, while the Shanghai Composite was down 0.7%. | |
| In Australia, the benchmark S&P/ASX 200 index had lost 1% by midday trade, dragged down by losses in commodities. Stocks in mining giant BHP Billiton were down more than 1.5%. | |
| What did Trump say? | What did Trump say? |
| Mr Trump pledged to rebuild the US steel and aluminium industries which he said had suffered "disgraceful" treatment from other countries, in particular China, for decades. | Mr Trump pledged to rebuild the US steel and aluminium industries which he said had suffered "disgraceful" treatment from other countries, in particular China, for decades. |
| "When our country can't make aluminium and steel... you almost don't have much of a country," he said. | |
| "We need great steel makers, great aluminium makers for defence." | "We need great steel makers, great aluminium makers for defence." |
| Mr Trump's announcement was slightly delayed amid reports of disagreement among his aides. | |
| More than a dozen metals executives, including representatives from US Steel Corp and Arcelor Mittal, stood alongside him as he made the announcement. | More than a dozen metals executives, including representatives from US Steel Corp and Arcelor Mittal, stood alongside him as he made the announcement. |
| During his presidential campaign, Mr Trump said that foreign countries were "dumping vast amounts of steel all over the United States, which essentially is killing our steelworkers and steel companies". | During his presidential campaign, Mr Trump said that foreign countries were "dumping vast amounts of steel all over the United States, which essentially is killing our steelworkers and steel companies". |
| Since taking office he has said cheap imports from China are harming the viability of industry in the US. | Since taking office he has said cheap imports from China are harming the viability of industry in the US. |
| What shape is the US steel industry in? | What shape is the US steel industry in? |
| The US imports four times more steel than it exports and is reliant on steel from more than 100 nations. | The US imports four times more steel than it exports and is reliant on steel from more than 100 nations. |
| The US Department of Energy says the steel industry is recovering after a slump following the 2008 financial crisis. | The US Department of Energy says the steel industry is recovering after a slump following the 2008 financial crisis. |
| But it is an industry significantly weaker than it was at the turn of the millennium. In 2000 the US produced 112m tons of steel - a figure that had fallen to 86.5m tons in 2016. | But it is an industry significantly weaker than it was at the turn of the millennium. In 2000 the US produced 112m tons of steel - a figure that had fallen to 86.5m tons in 2016. |
| In 2000, 135,000 people were employed in the industry - a figure that fell to 83,600 in 2016. | In 2000, 135,000 people were employed in the industry - a figure that fell to 83,600 in 2016. |