European Union going to a trade war with USA

European Union is preparing for a trade war with USA after USA president Donald Trump announced extraordinary custom duties on steel and aluminium imports.
He announced 25% duties on steel imports, 10% on aluminium

A matter of national security?

Trump refereed to a legislation from 1962 (Cold War times), which allows him to reduce imports and impose unlimited tariffs, if it is justified by national security.

All the details will be announced next week.

Catastrophic consequences

According to "The Economist" the decision will carry catastrophic consequences for Canada, Mexico and South Korea.

WTO warns

Roberto Azevedo, WTO Director General warned

Trade war is in nobody's interest.

Europe responds

It didn't take long time for the EU to respond.
Levi's jeans, Harley-Davidson motorbikes and bourbon could all receive tit-for-tat duty hikes, according to Jean-Claude Juncker, the European Commission president.

IMF warns too....

The International Monetary Fund (IMF) has warned that the introduction of duties on steel and aluminum, announced by US President Donald Trump, is likely to cause damage not only outside the United States but also the US economy.

Canada reacts

Canada's Prime Minister stated the US tariffs on steel and aluminum imports would cause significant distortion of markets in both countries and are "absolutely unacceptable"

The worst decision of Donald Trump

"The Wall Street Journal" commented that this is the worst mistake of Trump's administration to date.
The plans have been even criticized by Republicans themselves.

Republicans are afraid that the introduction of retaliatory duties may bring the country back to recession and thus worsen their already difficult situation before the November elections to Congress.

Who lobbies for the tariffs?

Only representatives of US steel and aluminum producers, the AFL / CIO trade union federation and some representatives of the opposition Democratic Party representing the states in which steel production was concentrated in the past supported the protectionist plans of the American leader.

Trump responded on twitter

Can Trump be the "Next Lehman Brothers"

Can he actually trigger a chain reaction of "unintended consequences" and push the world into another recession?