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Mexico said it would levy tariffs on American farm products, while Canada zeroed in on the same metals that Trump has targeted.

Trade war fears between the United States and its trading partners have been rife since March.

"A trade war is when there is an escalation of conflict".

"We should stick to the clearly defined battlefield, where the response is appropriate and proportional".

"The US measures are a protectionist intervention in global trade and run counter to the principles of the World Trade Organization", the body said in a statement, сalling for a swift WTO decision on challenges to the tariffs.

Freeland is making the announcement alongside Prime Minister Justin Trudeau following word from the White House that the USA will slap tariffs on Canadian, Mexican and European Union steel and aluminium as of midnight tonight.

Several company representatives quietly acknowledged their concerns about the impact of a looming trade war involving steel and aluminum, and said they would be watching the issue closely.

"We would operate within (multilateral) frameworks if we were convinced that people would move quickly", he said.

"The U.S. now leaves us with no choice but to proceed with a [World Trade Organization] dispute settlement case and with the imposition of additional duties on a number of imports from the U.S. We will defend the Union's interests, in full compliance with worldwide trade law", Juncker said in a statement.

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Ms Malmstrom accused Mr Trump of "playing a unsafe game" as she confirmed the European Union would be taking "proportionate and measured" action against the US.

Guajardo said retaliation was aimed at products chosen to hit districts with important lawmakers who had been warning Trump not to mess with Mexico. Many prominent Republicans have criticized the administration's aggressive use of that justification, saying its trade actions will hurt the US economy.

In a statement released yesterday, Stefanik said she "strongly" opposes the White House decision.

She dismissed the Trump administration's argument that the tariffs are needed for US national security reasons.

Germany's carmakers are especially braced for the latest threat from Trump, who earlier this month launched proceedings that could eventually slap 25 percent tariffs on auto imports.

Public companies may feel pressure from shareholders who would expect them to fight the USA government in court and get an injunction, he said in an interview. "Indeed, we account for half of USA steel exports".

A trade pact between the United States and its neighbors was on the verge of imploding on Friday as Canadian Prime Minister Justin Trudeau rejected the terms for an accord set forth by the Trump administration. Canada pledged to fight back with its own measures.

But the NAFTA talks sputtered anyway, and the Trump administration imposed the tariffs at midnight Thursday.


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