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Trump tariffs: IMF pleads against trade war as EU threatens to retaliate - live updates Trump tariffs: IMF pleads against trade war as EU threatens to retaliate - as it happened
(about 3 hours later)
And finally, here’s our latest news story on the growing fears of a global trade war:
Europe has warned Donald Trump to expect retaliatory strikes against American icons like Harley-Davidson, Levi’s jeans and Kentucky bourbon, if he sparks a trade war by going ahead with punitive US tariffs on foreign steel.
The European commission president, Jean-Claude Juncker, warned there would be consequences for the US if Trump’s threat of a 25% tariff on steel and 10% on aluminium imports takes effect.
“If the Americans impose tariffs on steel and aluminium, then we must treat American products the same way,” Juncker told German television stations.
“We must show that we can also take measures. This cannot be a unilateral transatlantic action by the Americans,” he said. “I’m not saying we have to shoot back, but we must take action.
“We will put tariffs on Harley-Davidson, on bourbon and on blue jeans – Levi’s,” he added.
His warning came as the International Monetary Fund said that Donald Trump’s plan would cause international damage – and also harm America’s own economy.
“The import restrictions announced by the US President are likely to cause damage not only outside the US, but also to the US economy itself, including to its manufacturing and construction sectors, which are major users of aluminium and steel,” the IMF said.
Other world leaders also threatened retaliation. Canadian prime minister, Justin Trudeau, said US tariffs would be “absolutely unacceptable” and China too expressed “grave concern” over the plans.
Meanwhile, the US president breezily asserted that “trade wars are good”.
When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win. Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!
Here’s the full story:
That’s all for today. Thanks for reading and commenting. GW
Ed Conway of Sky News says the criticism of president Trump’s plans from the IMF is significant:
V unusual for the IMF to issue a statement like this. Still less against their biggest shareholder. Their reaction to US tariffs: pic.twitter.com/38iOvq3aCo
Marketwatch points out that Donald Trump’s pledge to impose new tariffs went down well with one audience -- the US steel and aluminum producers.
The American Iron and Steel Institute said it was “pleased” with the tariffs announcement, while the Aluminum Association said “we appreciate” the president’s commitment to help the aluminum industry.
Ding ding goes the Wall Street closing bell.
As traders catch their breath after another busy week, the Dow Jones industrial average is down almost 71 points, or 0.3%, at 24,538.
That’s a recovery on its earlier losses, but also the fourth daily drop in a row.
#DJIA closes down three percent for the week. pic.twitter.com/u8uQq7Yj4C
Big fallers on the Dow included McDonald’s (-4.6%), Caterpillar (-2.3%) and Boeing (-1.1%).
The S&P 500, which contains more companies than the Dow, ended up 0.5%.
Wall Street is staging a late recovery!Wall Street is staging a late recovery!
In the last few minutes of trading, the Dow is bouncing back from its lows, and the S&P and the Nasdaq are now up for the day....In the last few minutes of trading, the Dow is bouncing back from its lows, and the S&P and the Nasdaq are now up for the day....
Here’s a reminder that Canada, Brazil, South Korea and Mexico will take the biggest hit from new steel tariffs:Here’s a reminder that Canada, Brazil, South Korea and Mexico will take the biggest hit from new steel tariffs:
Canada and Brazil are likely to bear the brunt of any tariffs on #steel imposed by @realDonaldTrump, as their steel comprised 16% and 13%, respectively, of US steel imports as of September 2017. pic.twitter.com/AzbVHrd2spCanada and Brazil are likely to bear the brunt of any tariffs on #steel imposed by @realDonaldTrump, as their steel comprised 16% and 13%, respectively, of US steel imports as of September 2017. pic.twitter.com/AzbVHrd2sp
Gregory Daco of Oxford Economics suggests the new steel tariffs could scupper the hopes of the US rejoining the NAFTA trade bloc:Gregory Daco of Oxford Economics suggests the new steel tariffs could scupper the hopes of the US rejoining the NAFTA trade bloc:
Interesting breakdown of US #steel imports. If Canada and Mexico aren't carved out of tariffs (it doesn't seem they will) then consequences would be very real for #NAFTA negotiations pic.twitter.com/3TqkV8yzLHInteresting breakdown of US #steel imports. If Canada and Mexico aren't carved out of tariffs (it doesn't seem they will) then consequences would be very real for #NAFTA negotiations pic.twitter.com/3TqkV8yzLH
Canada is mulling its own response to the threat of tariffs on its steel and aluminum sales to the US.Canada is mulling its own response to the threat of tariffs on its steel and aluminum sales to the US.
As we reported earlier, Canadian PM Justin Trudeau said such a move was “absolutely unacceptable”. A government source has now told Reuters that Ottawa is considering what sanctions it could impose in retaliation.As we reported earlier, Canadian PM Justin Trudeau said such a move was “absolutely unacceptable”. A government source has now told Reuters that Ottawa is considering what sanctions it could impose in retaliation.
Canada is taking nothing for granted, the source added -- another sign that a trade war could break out....Canada is taking nothing for granted, the source added -- another sign that a trade war could break out....
UPDATED: Canada seeks exemption to Trump's steel tariffs, vows retaliation https://t.co/h5xlcjSOxzUPDATED: Canada seeks exemption to Trump's steel tariffs, vows retaliation https://t.co/h5xlcjSOxz
With 45 minutes to go, the Dow is down 222 points, or 0.9%, and heading for a weekly loss.With 45 minutes to go, the Dow is down 222 points, or 0.9%, and heading for a weekly loss.
The vice-president of the European Commission, Jyrki Katainen, has warned that Trump’s new tariffs could trigger a global trade war.The vice-president of the European Commission, Jyrki Katainen, has warned that Trump’s new tariffs could trigger a global trade war.
Katainen, who is also the former prime minister of Finland, points out that protectionism helped to create the Great Depression of the 1930s.Katainen, who is also the former prime minister of Finland, points out that protectionism helped to create the Great Depression of the 1930s.
A thread on US #SteelTariffs: 1. The announced US tariffs on steel and aluminium are a very dangerous protectionist move. US allies, like the EU, will be more affected than China, where most of the overcapacity is.A thread on US #SteelTariffs: 1. The announced US tariffs on steel and aluminium are a very dangerous protectionist move. US allies, like the EU, will be more affected than China, where most of the overcapacity is.
2. US economy’s competitiveness will be hit, as downstream industries will pay much higher prices. #SteelTariffs2. US economy’s competitiveness will be hit, as downstream industries will pay much higher prices. #SteelTariffs
3. There is also a serious risk of global trade war, as more economies may take safeguard measures to protect their markets from diverted steel trade flows. #SteelTariffs3. There is also a serious risk of global trade war, as more economies may take safeguard measures to protect their markets from diverted steel trade flows. #SteelTariffs
4. The EU will not stay idle and is preparing countermeasures against the US to rebalance trade flows. #SteelTariffs4. The EU will not stay idle and is preparing countermeasures against the US to rebalance trade flows. #SteelTariffs
5. At the same time, we believe it is still possible and preferable to avoid a trade war, as it is difficult to stop it once it starts. #SteelTariffs5. At the same time, we believe it is still possible and preferable to avoid a trade war, as it is difficult to stop it once it starts. #SteelTariffs
6. Last time a domino effect of tit-for-tat protectionist measures swamped the world after 1929, and it did not end well. #SteelTariffs (thread ends)6. Last time a domino effect of tit-for-tat protectionist measures swamped the world after 1929, and it did not end well. #SteelTariffs (thread ends)
Within Europe, Germany could take the biggest hit from Trump’s new tariffs. That’s because it’s the biggest EU-based exporter of steel to the US:Within Europe, Germany could take the biggest hit from Trump’s new tariffs. That’s because it’s the biggest EU-based exporter of steel to the US:
https://t.co/ghJwWqfNrg pic.twitter.com/j7YdtANuzVhttps://t.co/ghJwWqfNrg pic.twitter.com/j7YdtANuzV
EU countries will also worry that steel will be redirected to them, instead of going to America. An influx of extra imports could hurt their domestic industry (although also deliver cheaper prices to consumers)EU countries will also worry that steel will be redirected to them, instead of going to America. An influx of extra imports could hurt their domestic industry (although also deliver cheaper prices to consumers)
Business Insider have crunched the latest trade figures to show that Canada would take the biggest hit from the tariffs announced on Thursday:Business Insider have crunched the latest trade figures to show that Canada would take the biggest hit from the tariffs announced on Thursday:
Here are the countries that could get hit hardest by Trump's steel tariff. (Chart by @AndyKiersz) https://t.co/aClnQhkGmv pic.twitter.com/TmOlh4iNI6Here are the countries that could get hit hardest by Trump's steel tariff. (Chart by @AndyKiersz) https://t.co/aClnQhkGmv pic.twitter.com/TmOlh4iNI6
Just in: The governor of Wisconsin, Scott Walker, has called on Donald Trump to reconsider his decision on steel and aluminum tariffs.Just in: The governor of Wisconsin, Scott Walker, has called on Donald Trump to reconsider his decision on steel and aluminum tariffs.
He warns that US companies which use steel could be driven abroad, costing Americans their jobs.He warns that US companies which use steel could be driven abroad, costing Americans their jobs.
.@GovWalker, who is announcing new jobs at United Alloy in Janesville today, says he opposes @realDonaldTrump proposed steel tariffs. #news3 pic.twitter.com/5hnxS4gWD5.@GovWalker, who is announcing new jobs at United Alloy in Janesville today, says he opposes @realDonaldTrump proposed steel tariffs. #news3 pic.twitter.com/5hnxS4gWD5
Here’s our news story on Wilbur Ross’s comments (complete with that tin of soup)....Here’s our news story on Wilbur Ross’s comments (complete with that tin of soup)....