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U.S. Set To Slap Tariffs On Canadian Steel And Aluminium

U.S. Set To Slap Tariffs On Canadian Steel And Aluminium

However, the Nasdaq showed a 0.09 per cent gain.

On Wednesday, the Trudeau government said it would take additional steps to prevent foreign steel and aluminum from being dumped into the North American market - news that appeared created to try to head off the tariff decision.

Ross and Lighthizer seemed like the odd men out at this week's gathering at the OECD, an global economic agency that includes the U.S.as a prominent member. The S&P 500 was down 0.30 per cent in early trade and the Dow was down 0.69 per cent. Century Aluminum (CENX) climbed 3.9%.

Trump invoked a 1962 trade law to erect protections for United States steel and aluminium producers on national security grounds, amid a worldwide glut of both metals that is largely blamed on excess production in China.

The Trump administration is making good on its threat to slap Canada with hefty steel and aluminum tariffs, setting the stage for a possible trade war and leaving Prime Minister Justin Trudeau in the middle of a very divided group of leaders at next week's G7 summit. Even though the exemptions have covered more than half of steel imports, steel prices have moved higher this year.

US Trade Secretary Wilbur Ross immediately responded to the criticism of Washington's transatlantic partners, saying that the EU's retaliation for the introduction of metal tariffs was unlikely to have much impact on the US economy.

"Such a move would hit American manufacturers with higher costs, slow the growth of the US construction sector, and put the brakes on job creation in both of these key industries", the Chamber said.

U.S. Presidential nomineeDonald Trump walks past a Mexican flag after giving a press conference with Mexico's President Enrique Pena Nieto at the Los Pinos residence in Mexico City, Mexico, August 31, 2016.

And President Donald Trump has the authority to alter the tariffs or impose quotas or "do anything he wishes at any point" - allowing "potential flexibility" to resolve the issue.

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On Wednesday, the Trudeau government said it would take additional steps to prevent foreign steel and aluminum from being dumped into the North American market - news that appeared created to try to head off the tariff decision. Yet Canada is also, far and away, the largest export market for USA steelmakers.

Trump imposed the steel and aluminum penalties under a 1962 law that gives the president broad power to increase or reduce tariffs on goods deemed critical to national security.

American steel and aluminum stocks rose in pre-market trading amid speculation that the president would move ahead imposing tariffs on all imports of the metals.

"We will defend the EU's interests, in full compliance with global trade law", he added.

Last week, Trump ordered the Commerce Department to conduct a national security investigation into foreign auto imports.

"The responsibility falls exclusively on to United States authorities", Le Maire said.

The Commission President has vowed to hit back at Mr Trump's trade tariff as he signalled the start of a trade war between Brussels and Washington with retaliatory tariffs within hours.

Fears of a global trade war are already weighing on investor confidence and could hinder the global economic upturn. But he said he was ready to throw in the towel on that assessment.