Mexico, EU and Canada Vow to Retaliate Tariffs
The trade penalties, 25% on imported steel and 10% on imported aluminum, take effect at midnight, Commerce Secretary Wilbur Ross told reporters Thursday.
Mexico, the EU and Canada immediately announced plans to retaliate with their own tariffs against American products.
Trump announced worldwide steel and aluminum tariffs in March but granted exemptions to some major trading partners.
Canada, Mexico and the EU were among the countries granted relief while the United States pursued negotiations to address the administration's concerns about the state of domestic steel and aluminum production. Those negotiations had a Friday deadline.
Trump's decision could raise prices for Americans on a range of everyday products. It could also place the United States in a trade dispute on more than one front. The administration is separately moving ahead with tariffs on Chinese goods.
Trump imposed the steel and aluminum penalties under a 1962 law that gives the president broad power to increase or reduce tariffs on goods deemed critical to national security.
"We take the view that without a strong economy, you cannot have strong national security," Ross told reporters.
Trump's announcement lifted American steel and aluminum stocks because those companies stand to benefit from penalties against their foreign competitors. U.S. Steel climbed 3%. But the broader market sank because of trade war fears. The Dow fell about 200 points.
Canadian officials said at a press conference that Canada would enact tariffs on $12.8 billion in US exports, effective July 1, to retaliate against Trump's action.
"Let me be clear," Prime Minister Justin Trudeau said. "These tariffs are totally unacceptable."
Foreign minister Chrystia Freeland called it "the strongest trade action Canada has taken in the post-war era."
Keep reading at CNNMoney.