The Trump administration shows scant sign of watering down its plan to impose stiff tariffs on steel and aluminum imports with carve-outs for specific countries, despite opposition from US allies and Republican lawmakers.
"China does not want to fight a trade war with the United States but we absolutely will not sit by and watch as China's interests are damaged", said Zhang, a spokesman for Parliament and formerly an ambassador to the US.
American allies including Canada have protested the planned protectionist move by the president, saying they shouldn't be covered by Trump's planned 25 percent tariffs on steel and 10 percent on aluminum.
European Commissioners are to discuss a formal response this Wednesday.
But Navarro contends that China was "the root of the problem" despite being a relatively small player in the USA steel and aluminium market. As he met with Israeli prime minister Benjamin Netanyahu, Trump said: "Our country on trade has been ripped off by virtually every country in the world, whether it's friend or enemy".
Brussels will join other countries in challenging the measures at the WTO and says it will also look into safeguards.
Full-scale retaliation would go against its long-standing message that global trade should be free - as well as fair.
"This wave of globalization has wiped out totally, totally our middle class", Trump told voters in the hard-hit steel town of Monessen, Pennsylvania, during one of his campaign stops. United States Steel Corporation (NYSE: X) stock jumped 5.7 percent Thursday after the tariff was announced.
Trump stoked further fears of worldwide turmoil on Friday by claiming "trade wars are good" and "easy to win".
The 3.4 million tons crossing the Atlantic is about 2 percent of European Union steel production.
The combination of fiscal stimulus, which Fed officials viewed as hardly a game-changer for monetary policy, and a brewing trade war is a recipe for the sort of no-win situation central bankers faced in the 1970s when they had to stomach high inflation or run the risk that interest rate increases would trigger a recession, Reuters explained. "We lost $800 billion on trade", he said. "Steel manufacturers are already telling contractors to expect price increases", Coletti said.
The tariffs are part of Trump's plan to counter what he says are decades of unfair trade practices and ill-advised trade agreements that have robbed the US of revenue and jobs. Trump has also said these sorts of threats could incentivise foreign companies to expand their USA operations, so they don't have to pay the import fees.
"The President is going to quickly find out that you can't start a trade war with your allies and expect them to work with you on other issues", said Jamie Fly, senior fellow at the German Marshall Fund.
The European Union is the world's biggest trading bloc and the second largest steel producer, with China being the first. "The equivalent figure for steel is only roughly 1.5 percent", the bank said.