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The EU is poised to hit back against U.S. President Donald Trump's tariffs on steel imports by rolling out countermeasures against €2.8 billion-worth of U.S. exports including Levi's jeans, Harley-Davidson motorbikes and bourbon whiskeys.

President Trump's recent bombshell announcement about imposing a 25 percent tariff on all steel imports is expected to deal a massive blow to South Korea's steel industry.

Canadian Prime Minister Justin Trudeau said that the USA tariffs would be "absolutely unacceptable" and China too expressed "grave concern" over the plans, The Guardian reported.

European Commission head Jean-Claude Juncker promised to react firmly.

Canada is the top supplier to the United States of both products. "They've been brutal to us", Trump said at a Florida fundraiser.

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Trump "made clear that this would be an across-the-board tariff with no exclusions", the official told reporters. "One problem with exclusions is that it's a slippery slope. But the fact that they are being justified under a flimsy pretext of national security increases the risks of retaliation", said Andrew Kenningham, chief global economist at Capital Economics.

The official said this is part of the tough trade policy that Trump had promised during his election campaign.

A proposed tariff of 25% on steel imports and 10% on aluminum boosted the stock prices of steel makers, but industrial companies, aircraft manufacturers, carmakers saw their stocks fall. "This scenario would lead to the exact opposite outcome of the administration's stated objective, which is to protect American jobs", Walker said.

Ross held up cans of soup, beer and soda, which he said he had bought that morning, saying the tariffs would only increase the cost of those products by tenths of a cent.

Canada is hoping it will be exempted from the new tarrifs, which also include 10 per cent on aluminum. He also pledged to protect the U.S. steel industry but this is the first major step in fulfilling those promises. They also would raise the possibility of higher prices for American businesses and consumers.

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Brussels insisted that its countermeasures would be compatible with World Trade Organization rules and could be implemented quickly, without the need for a drawn-out lawsuit at the WTO in Geneva. The net result of that is a half a trillion-trade deficit. "We kind of say, whenever you start a trade war, everybody leaves with a black eye", Mitchell said.

Meanwhile, the US President on Friday night asserted that "trade wars are good".

On Friday, Trump tweeted that trade wars are good, and easy to win.

Trump has since publicly championed his move, bragging that "trade wars are good, and easy to win". The Business Roundtable, one of Washington's most powerful lobby groups, said it "strongly disagrees" with the decision "because it will hurt the U.S. economy and American companies, workers and consumers by raising prices and resulting in foreign retaliation against United States exporters".

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