Trump links steel tariff to new Nafta deal


US President Donald Trump on Monday denied "backing down" on his decision to impose a 25% import duty on steel and another 10% on aluminium.

And if the ongoing renegotiation of the North American Free Trade Agreement with Mexico and Canada does not produce the desired result, Trump said he'll terminate the deal. Republicans have been hard pressed to support Mr. Trump's import tariffs, which many argue could have negative impacts on the US economy. "We are renegotiating NAFTA as I said I would, and if we don't make a deal, I'll terminate NAFTA". Massive relocation of companies & jobs, ' Trump tweeted. Commerce Secretary Wilbur Ross called threats from American allies "pretty trivial" and not much more than a "rounding error".

Because the world is run by toddlers in suits, the European Union is already planning its tit-for-tat tariffs, reportedly with a plan to slap an import tariff of 25% on US steel. "Should restrictions be imposed on Canadian steel and aluminum products, Canada will take responsive measures to defend its trade interests and workers", Canada's minister for foreign affairs, Chrystia Freeland, said in a statement after the announcement. It seems the only ones feeling good about the tariffs are the steel and aluminum industries, whose stock prices rose while the market dropped.

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Now the US, Canada and Mexico are renegotiating the NAFTA agreement which Trump had earlier deemed to be unfair for the US. The latest round of negotiations is expected to wrap up Monday in Mexico City.

In another comment on the talks tweeted on Monday, Trump reprised two running criticisms of Canada and Mexico.

The president also wrote that Canada must treat US farmers better and Mexico must do more to stop drugs from getting into the United States. They have not done what needs to be done. "Millions of people addicted and dying". Our friends and enemies have taken advantage of the US for many years.

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The announcement saw world stock markets plunge, while many United States commentators - including from President Trump's own party - raised concerns about potential higher costs for usa manufacturers.

He told the Associated Press, "Usually, all sides lose in a trade war". It is the top exporter to US markets of both steel and aluminum.

German vehicle companies urged policymakers on Monday to avoid a trade war with the United States "at all costs".

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