EU, US cite progress in tariff talks
Meanwhile, the United States and European Union reported progress during high-level trade discussions in Paris on the same day the new tariffs were enacted.
EU trade negotiator Maros Sefcovic and US Trade Representative Jamieson Greer said the meeting was constructive, with technical-level talks continuing in Washington and further negotiations planned.
“What makes me optimistic is I see the progress, the discussions are now very concrete,” said Sefcovic.
Greer echoed the sentiment, noting a “willingness by the EU to work with us to find a concrete way forward to achieve reciprocal trade.”
Markets react to metals hike
Markets responded with volatility to the hike in tariffs, which doubled the previous 25 per cent duty rate introduced in March. Canada and Mexico, the US’s largest trading partners for steel, are among those hit hardest.
The new tariffs also jolt the aluminium sector, with Canada being the top exporter of the metal to the US. Prime Minister Mark Carney said Canada was engaged in “intensive” talks to reverse the levies, which Ottawa considers illegal. Labour union Unifor called for reciprocal tariffs on US metal imports.
The American Automotive Policy Council warned the measures would increase vehicle production costs and harm US competitiveness. Meanwhile, the Congressional Budget Office forecast a negative impact on US economic output.
