Potential retaliation by U.S. trading partners

On Thursday, the US government did not extend the tariff exemptions for imports of steel and aluminium for its most important western trading partners. The World Trade Organisation (WTO) can allow these countries to retaliate against the tariffs within its framework, up to the amount of their respective estimated losses. However, the WTO would have to establish that the Trump administration was wrong to impose the tariffs on national security grounds. According to the Peterson Institute for International Economics (PIEE) Canada could impose tariffs worth around 3.2 billion dollars in retaliation.

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