Morneau speaks with USA treasury secretary about possible tariffs

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Europe has drawn up a list of USA products from bourbon to Harley Davidson motorbikes on which to apply tariffs if Trump carries out his plan, European Commission President Jean-Claude Juncker said.

Stocks are mostly lower on Wall Street as investors worry that an escalation of trade tensions could harm big US companies and the global economy.

He dismissed President Donald Trump's claim the US can slap tariffs on steel and aluminum for national security reasons.

The shocking protectionist strategy is expected to be confirmed as early as next week, and the tariffs of 25 percent on steel and 10 percent on aluminum, are expected to put intense pressure on both domestic and global companies. He made the announcement on Thursday at a hastily convened meeting with executives of those two industries.

Auto lobbyists were still scrambling to learn the details of the tariffs and if they would apply to all countries and for what time period. Despite the latest tariffs were not restricted to Chinese products, the new trade policy is widely viewed as targeting China, which is the world's largest producers of both steel and aluminum. Foreign Ministry spokeswoman Hua Chunying merely said in Beijing Friday that China urges the follow trade rules.

Safeguard measures, last deployed by Europe in 2002 after then US President George W. Bush imposed steel import duties, would be created to guard against steel and aluminium being diverted to Europe from elsewhere if US tariffs come in. Protectionism can not be the answer to our common problem in the steel sector.

"This requires a coordinated global approach".

Australia Trade Minister Steve Ciobo said his biggest concern was now "retaliatory measures" by other major economies.

While China appeared to be the focus of Mr Trump's actions, Canada, South Korea Mexico and Germany are among the biggest exporters of steel to the United States.

"These measures, would seriously undermine our ability to compete in this market".

The EU would "form a coalition of like-minded countries and potentially take the United States to the WTO court together", Katainen said in reference to the World Trade Organization tribunal in Geneva.

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These are the opening salvos in what may be an ugly global trade war.

And if you're wondering which country could get hurt the most from the Trump tariffs, think of your last nighttime drive home from Toronto.

We will always stand up for Canadian workers and Canadian businesses.

His boss, European Commission chief Jean-Claude Juncker, suggested the 28-nation trade could also target typically American products such as Harley Davidson motorcycles, Bourbon whiskey and blue jeans.

In response to the news, shares in General Motors closed nearly 4 per cent lower.

The Dow Jones Industrial average did not respond well to the news. The FTSE 100 in London gave up 1.5 percent.

But there are fears in Brussels that the retaliation by the EU and other worldwide traders such as Canada, could escalate into a full-scale trade war involving the EU, China and other trade partners.

It wasn't clear if America's key trading partners - including Canada and the European Union - will be exempt from the proposed tariffs.

Did Hope Hicks jump or was she pushed by team Trump?

"We buy as much domestic can sheet aluminum as is available, however, there simply isn't enough supply to satisfy the demands of American beverage makers like us", MillerCoors said in a tweet.