US trading partners hit back on steel, aluminum tariffs

Trump told reporters Wednesday that Washington would "of course" respond to the countermeasures.

He claimed his country would "win that financial battle" with the EU.

'Significant costs'

Canada, which is heavily exposed to the US steel and aluminum levies, said its own tariffs will hit steel products, aluminum, and goods ranging from computers to sports equipment.

Incoming prime minister Mark Carney later added that he was ready to negotiate with Trump on a renewed trade accord.

His country supplied about half of US aluminum imports and 20 percent of its steel imports, according to a recent note by EY chief economist Gregory Daco.

Besides Canada, Brazil and Mexico are also key US suppliers of steel, while the United Arab Emirates and South Korea are among providers of aluminum.

The Alliance for American Manufacturing said it supported the tariffs and their inclusion of steel derivatives: "This addition will ensure that importers can't game the system."

But the American Automotive Policy Council (AAPC) representing the "Big Three" automakers -- Ford, General Motors and Stellantis -- said it was reviewing the levies.

The group's president Matt Blunt warned that tariffs, including their extension to auto parts with steel and aluminum, "will add significant costs for automakers, suppliers and consumers"

'Enough war' 

US Trade Representative Jamieson Greer criticized the EU's promises of retaliation, calling the bloc's economic policies "out of step with reality."

"The EU's punitive action completely disregards the national security imperatives of the United States –- and indeed international security," Greer said.

His remark came after EU Council chief Antonio Costa called on Washington to de-escalate the situation and enter dialogue.

"I think we have enough war in the world, we need to stop the wars we have and not create a trade war," Costa said.

German Chancellor Olaf Scholz, head of Europe's largest and heavily export-oriented economy, condemned Washington's moves as "wrong" and warned of increased inflation.

Beijing's foreign ministry said "there are no winners in trade wars."

China is the world's leading steel manufacturer, although not a major exporter of the product to the United States.

Trump's steel and aluminum tariffs will likely balloon costs of producing goods from home appliances to automobiles and cans used for drinks, threatening to raise consumer prices down the road, experts say.

 'Massive uncertainty' 

Uncertainty over Trump's trade plans and worries that they could trigger a recession have roiled financial markets. But US stocks regained some ground Wednesday even as some Asia markets retreated.

The threat of protectionism, said Cato Institute research fellow Clark Packard, has allowed US steel and aluminum firms to raise prices: "It's creating massive amounts of uncertainty."

Trump also targeted both metals in his first presidency.

The president has promised further "reciprocal tariffs" from April 2 to tackle what he considers unfair behavior.

The lack of exemptions Wednesday came despite efforts to push for exclusions.

Tokyo expressed regret it had not succeeded while Canberra called the tariffs unjustified.

Canberra and London stopped short of retaliation. The Mexican government said it would not immediately strike back and Brazil said it would not react.