The initial tariffs were announced in March after President said that the U.S. had been unfairly treated in trade with its neighboring and oversees partners.
Countries around the world fought back on Friday against President Donald Trump's decision to slap tariffs on steel and aluminum imports, announcing retaliatory countermeasures and warning that the USA plan will hurt United States consumers.
Negotiations on a further exemption for Canada had focused on agreeing to US demands that NAFTA force auto makers to use more North American-made steel, the sources said. But the NAFTA talks sputtered anyway, and the Trump administration imposed the tariffs at midnight Thursday.
Trump castigated Canada in a tweet on Friday morning, saying it had treated USA farmers "very poorly for a very long period of time".
Now, both of those men have left the White House, and Trump has gravitated instead toward seeking the counsel of trade hardliners like Commerce Secretary Wilbur Ross, senior adviser Peter Navarro, and U.S. Trade Representative Robert Lighthizer.
These include products the European Union may subject to tariffs from rice to orange juice, cosmetics, motorcycles, motor boats to stainless steel sinks.
President Emmanuel Macron of France said Friday that he told Trump in a phone call that the new USA tariffs on European, Mexican, and Canadian goods were illegal and a "mistake". We have not ruled out counter measures and will support any European Union appeal to the WTO.
"They think they can make Europeans look small".
"This is stupid - it's counterproductive", Francis Maude, a former British trade minister, told the BBC.
The U.S. has a shortage of domestic supply of steel and aluminum, while prices have risen nearly 40 per cent since Trump announced tariffs in March, when he temporarily exempted Canada.
The federal government announced Thursday afternoon that it would impose some $16.6 billion in dollar-for-dollar counter-tariffs on a wide variety of United States goods - everything from whiskey to sleeping bags to quiche - that will take effect on Canada Day.More news: Michael Rotondo, evicted New York son, moves out after Lego row
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Echoing Canadian President Justin Trudeau, Malmström said that the tariffs would hurt jobs in the U.S.as well.
It came after the European Union said it would introduce retaliatory tariffs after Mr Trump's "illegal" and "dangerous" decision.
On the other side of the argument, as A.P. points out, American ally Japan has already been paying the tariffs. "This is protectionism, pure and simple".
The EU is preparing to slap tariffs on U.S. products, including bourbon, motorcycles, and blue jeans, worth up to 2.8 billion euros ($3.3 billion). David O'Sullivan, the EU's ambassador in Washington, said the retaliation will probably be announced in late June.
"I stated that I thought we were quite close to reaching an agreement, and perhaps the time had come for me to sit down with the president in Washington in order to finalize the NAFTA agreement", Trudeau said in French.
A similar investigation launched a year ago resulted in a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum, although in many cases those tariffs have been suspended while the US negotiates with exporting countries.
The world's two biggest economies have threatened to impose tariffs on up to $200 billion worth of each other's products.
Trudeau said at a news conference that he was prepared to travel to Washington this week to put the finishing touches on a reworked deal when he received a phone call from Pence, who insisted that any deal must expire after five years.
Trump invoked a 1962 trade law to erect protections for USA steel and aluminium producers on national security grounds, amid a worldwide glut of both metals that is largely blamed on excess production in China.
Canada and the USA are closely integrated trading partners and Thursday's moves could cripple industries, including the auto sector, where supply chains are interconnected and goods pass back and forth across the border several times before they are finished.
The two sources briefed on the matter said the decision would land before a Friday expiration deadline for exemptions to the planned tariffs.