'A slow motion train wreck': Trump is kicking off a trade war with America's closest allies

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May 31, 2018 3:47 PM

President Donald Trump is moving forward with steel and aluminum tariffs on imports from the European Union, Canada, and Mexico. Exemptions for the three allies were set to expire at midnight, and negotiations to avoid the tariffs fell apart.

President Donald Trump will impose steel and aluminum tariffs on imports from the European Union, Canada, and Mexico starting Friday.
The tariff decision will likely lead to retaliation from the three allies.
The tariffs will also cause major economic disruptions in the US, Canada, Mexico, and the EU.
"I don't know if it's officially a 'war' yet, but it's getting to be a pretty intense trade skirmish," one trade expert said.

Not even the US's closest allies can avoid getting caught in President Donald Trump's escalating trade battles.

Commerce Secretary Wilbur Ross said steel and aluminum tariff exemptions for the European Union, Canada, and Mexico would expire at the end of Thursday. Starting Friday, steel imports from those countries will be subject to a 25% tariff, and aluminum imports will be hit with a 10% tariff.

The US put in place exemptions for key allies after the initial announcement on the tariffs in March. But they were only designed to be temporary reprieves.

With negotiations going nowhere, Trump decided to go forward with the tariffs.

Edward Alden,

I don't know if it's officially a 'war' yet, but it's getting to be a pretty intense trade skirmish," Lester told Business Insider.

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