Canada says U.S. tariffs on steel, aluminum "unacceptable"

APD NEWS

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Canada said Thursday that the steep tariffs imposed by the United States on steel and aluminum imports were "unacceptable", vowing to take "responsive measures".

"As a key NORAD (North American Aerospace Defense Command) and NATO ally, and as the number one customer of American steel, Canada would view any trade restrictions on Canadian steel and aluminum as absolutely unacceptable," Canadian Foreign Minister Chrystia Freeland said in a statement.

U.S. President Donald Trump announced Thursday that he would impose tariffs on the importation of steel and aluminum products, in a move he claimed would protect the U.S. industry.

The United States is set to impose 25 percent of tariff on steel imports and 10 percent for aluminum, Trump said after a meeting with business executives.

"Any restrictions would harm workers, the industry and manufacturers on both sides of the border," Freeland said, adding that "should restrictions be imposed on Canadian steel and aluminum products, Canada will take responsive measures to defend its trade interests and workers."

According to the statement, the United States has a 2-billion-U.S.-dollar surplus steel trade with Canada, and Canada buys more American steel than any other country in the world, accounting for 50 percent of U.S. exports.

The U.S. actions could face legal challenges by other World Trade Organization members.

The European Union (EU) will react firmly and commensurately to defend its interests with regard to imposition of additional import duties on EU exports of steel and aluminum to the United States, President of the European Commission Jean-Claude Juncker said Thursday in a statement.

Washington's move could also affect ongoing trade talks on the automotive industry which is part of the renegotiation of the North American Free Trade Agreement involving the United States, Canada and Mexico that exported about 2.6 billion dollars of steel to its northern neighbor last year.

(ASIA PACIFIC DAILY)