Trump sets tariff on steel, aluminium imports, provokes global trade war

US President Donald Trump on Friday signed two proclamations that impose 25 per cent tariff on imported steel and 10 per cent on aluminium, a move that is likely to start a global trade war. The contentious tariffs come into effect in 15 days.

Though primarily targeted at the massive steel and aluminium dumping by China, only two countries Canada and Mexico have been exempted from the new import tariff, that too till the time the North America Free Trade Agreement (NAFTA) negotiations are complete.

Other countries would have to negotiate with US Trade Representatives (USTR) if they want exemptions from the steel and aluminium import tariff, Trump said as he vowed to slap "reciprocal tariffs" on countries like China and India if they do not match America's tariff.