Canada's Justin Trudeau accuses China of 'dumping' steel on global markets

Donald Trump: China says trade war with US will bring the world 'disaster' as countries prepare tariff response

Donald Trump: China says trade war with US will bring the world 'disaster' as countries prepare tariff response

"To impose tariffs that would hurt workers on both sides of the border - it's not like that that we'll negotiate a better NAFTA deal".

Both men sternly warned senior trade officials at a meeting last Tuesday that the tariffs "could endanger the US national security relationship with allies, according to five people familiar with the meeting", The Washington Post reported Wednesday.

The potential tariffs would target the technology and telecommunications sectors, according to Reuters, but would not be limited to those sectors.

The head of Eurofer, Europe's main steel federation, said Trump's reasons for slapping tariffs on steel and aluminum were an absurdity and that the move could cost tens of thousands of jobs across the continent.

He said he began talking about steel with Trump at the G7 summit in Sicily previous year, when he was emphatic that Canada poses no national security threat to the U.S. "Nobody wants to fight a trade war, and everyone knows fighting one harms others and does not benefit oneself". So, even if Korea is not given the exemptions, the government will have to continue its outreach efforts so it could get an exemption even after the period, or at least some Korean steel products might be excluded from the high tariffs.

RT: What do you make of these tariff moves by Trump?

China said Sunday that it will not initiate a trade war with the United States, but vowed to defend its national interests in the face of growing American protectionism.

Azevedo said Brazil was "exploring alternatives" for responding to the tariffs. Both will be losers and the world trade will suffer as a outcome. Tens of thousands of unemployed American workers are the victims of a trade war launched by China ever since it gained entrance in the World Trade Organization in 2001.

"We're not talking about fancy cashmere sweaters, we're talking about cotton T-Shirts and jeans and shoes that kids wear for back-to-school", she added.

The European Commission, which coordinates trade policy for the 28-nation EU, the world's biggest trading bloc, has said it is ready to impose safeguards, tariffs or quotas to protect its own steel and aluminium industries.

Trudeau accused China of flooding global markets with cheap steel on Monday, saying Canada has already taken steps to prevent "dumping". There have been two members of the politburo traveling to Washington to meet with their counterparts in the US. Disturbing the upstream supply chain could have a significant ripple effect on the products and services Americans depend on each day, raising prices on a broad range of goods.

"These tariffs are a really bad idea", said James Smith, chief economist at Parsec Financial Management Asheville, North Carolina.

Zhong added that the U.S. trade deficit with China is overestimated by about 20 percent, citing research by a panel tasked with investigating the discrepancy between the two nations' accounts of their trade balance. The three major economies take up almost half of South Korea's total outbound shipments.

The U.S. government has been dropping hints that the decision to excuse Canada and Mexico from tariffs on steel and aluminum might only be temporary, and somehow dependent on the result of trade negotiations. Vice President Jusuf Kalla said the country had the option of retaliating against imports of USA soybeans, wheat and aircraft. It was not clear when or where the meeting would take place. The USTR has also criticized China for demanding that US companies transfer their technology when setting up local units in China. They encourage American producers to hunker down behind the tax's protective wall, focusing on the captive local market instead of figuring out how to prevail in the rough and tumble of global competition.

Futures signaled a slightly firmer open for Wall Street, reversing their earlier direction.

The U.S. has suggested further delays might imperil the NAFTA process, with an outsider candidate leading polls for Mexico's July 1 election, and with Trump's party in danger of losing control of the U.S. Congress. The US makes a lot of internationally tradeable products that use steel - aircraft, autos, appliances and industrial machinery.

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