Berenberg Bank economist Holger Schmieding argued that the direct impact of a US-EU trade war on the world economy would actually be rather small. What's stoking fears of a full-blown trade war this time are Trump's singling out of China for retaliation for intellectual property theft, the tit-for-tat actions by the US and its closest allies over metal tariffs, and Trump's invocation of national security to justify some of his moves - which could open a Pandora's Box of similar claims by other nations.
Mr Trump originally imposed the tariffs in March, saying a reliance on imported metals threatened national security.
Trump's antagonistic trade policies - and specifically the steel and aluminum tariffs - drew global denunciation. "Congress can not sit idly by as Donald Trump continues to isolate the United States and cede leadership to Russian Federation and China on the global stage".
Mr Stace said the EU should activate "safeguard measures" to prevent European markets being disrupted by a surge of as much as 25 million tonnes of steel diverted from the US.
Separately, the USA and European Union have lodged WTO disputes challenging China's technology transfer policies.
"And we are working very hard to remind our American partners that we have such an integrated procurement supply chain that it's very difficult to fathom that there would be a security risk imposed by Canada".
U.S. Commerce Secretary Wilbur Ross is leaving Friday for Beijing for talks aimed at preventing a trade war with China.
Following Saturday's conclusion of a three-day meeting of G7 finance ministers, Canadian Finance Minister Bill Morneau issued a summary saying the other six members want Trump to hear their message of "concern and disappointment" over the US trade actions.
The decision would land ahead of a Friday expiration deadline for exemptions to the planned metals tariffs amid stalled trade talks with the European Union and would likely prompt retaliation from the bloc.
Canadian Prime Minister Justin Trudeau on Thursday said that the tariffs were "totally unacceptable" as Canada announced plans to slap tariffs on US$12.8 billion worth of USA products, ranging from steel to yogurt and toilet paper.
"That is why we are challenging the United States and China at the WTO and it demonstrates that we are not choosing any side", she said.
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"We were not at the negotiating table".
"Protectionism, pure and simple".
The EU is also planning retaliatory tariffs on United States steel and food in the coming weeks, once the cost of the U.S. tariffs becomes clear.
"But as the CBI have said, we do not want a trade war which does more to harm United Kingdom industries and consumers".
Macron's office said in a statement Friday that the two presidents spoke by phone after Trump's administration announced the decision Thursday to impose 25 percent tariffs on steel and 10 percent tariffs on aluminum.
Bruno Le Maire, France's finance and economy minister, was blunt in his assessment of the Whistler meeting, where ministers confronted Mnuchin.
The defence industry in both countries are easily among some of the world's largest steel and aluminum consumers; indeed, it was hard to find a spot on the convention floor where a firm wasn't showing off a tank or ship made of steel or a plane made of aluminum. "By people representing us who didn't have a clue", he said at the time.
"This is a bad day for world trade".
"Trade was discussed in the G7 in the context of risks to global economic growth and it was highlighted by quite a number of participants", Dombrovskis said.
"I think there was a comment out there that (this was) the G6 plus one".
"Our steel and aluminium industries are hugely important to the United Kingdom, but they also contribute to USA industry including in defence projects which bolster U.S. national security." she said.