Canadian dollar slides as economy slows, USA moves on tariffs

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"Today is a bad day for world trade", she said.

On NAFTA, Ross said there was "no longer a very precise date when they may be concluded and therefore (Canada and Mexico) were added into the list of those who will bear tariffs".

About half of Canada's steel and 80 per cent of aluminum is exported to the U.S.

"It sends a clear message that this kind of thing does not benefit anybody", Economy Minister Ildefonso Guajardo said in an interview on Mexican radio about the measures against USA products ranging from steel to grapes.

Friday's deadline for exemptions also affects Mexico and Canada, which are in negotiations with the United States on the North American Free Trade Agreement that Trump has said he wants to revamp, or abandon if the talks fail. The White House this week announced the tariffs on Chinese goods are back on the table, after suggesting earlier that they would be postponed, pending negotiations.

Trump has apparently chose to dismantle the existing order on trade.

Mexico also announced that it would hit back at Trump with "equivalent measures" on U.S. products.

Meanwhile, the president is reportedly mulling a plan to open a new front in his trade war by establishing a "total ban on the imports of German luxury cars".

President Giles Ashmead said: "While the USA is not a major export market for UK-produced aluminium, indiscriminate tariffs are a hindrance to free trade, and do little to secure a "level playing field" for global commerce".

Jean-Baptiste Lemoyne, French junior minister of foreign affairs, was similarly dispirited, saying that "France disapproves of these unjustified and unjustifiable measures".

In 2002, president George W. Bush imposed tariffs on steel imports for much the same reason as Trump-combating cheap imports from other countries-but ended them when the World Trade Organization ruled them illegal.

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Reverse tariffs could be slapped on items like Harley-Davidson motorcycles.

Donald Trump's move to slap penalties on imports from US allies including the European Union is moving the country to the brink of a global trade war as the White House tries to wrest concessions from trading partners that are threatening to retaliate.

Trudeau and French President Emmanuel Macron made their cases separately Wednesday to dissuade Trump, who is using a national-security clause in US trade law to justify the move.

The countermeasures will hit USA hot and cold rolled steel, plated steel and tubes, the ministry said.

Such an action could hurt Mexico, Canada, Germany and Japan.

Mexico quickly said the U.S. action was not justified, and vowed to retaliate with comparable penalties on American lamps, pork, fruit, cheese and flat steel. "Mexico is the main buyer of aluminum and the second of steel in the United States", the government said.

Tata Steel, which employs 8,500 people across the United Kingdom, has called for "swift and robust action" in response to the steel tariffs.

"Trade wars quickly become war, full stop", Macron said. I think that they are a little bit taken by surprise. Everybody has spats every now and again ... Thursday's tariff announcement by the White House will further complicate agreeing on a G-7 agenda.

Mexico retaliated nearly immediately against U.S. Republican politician Kevin Brady said: 'These tariffs are hitting the wrong target'.

In Frankfurt, shares in Deutsche Bank fell sharply, losing seven percent at the close, after the U.S. Federal Deposit Insurance Commission classified the German lender among its "problem banks" according to a person familiar with the matter.

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