Trump defiant after global criticism of steel, aluminium tariffs

U.S. President Donald Trump struck a defiant tone on Friday, saying trade wars were good and easy to win, after his plan to put tariffs on imports of steel and aluminium triggered global criticism and a slide in world stock markets.

The European Union raised the possibility of taking countermeasures, France said the duties would be unacceptable and China urged Trump to show restraint. Canada, the biggest supplier of steel and aluminium to the United States, said it would retaliate if hit by U.S. tariffs.

U.S. stocks opened sharply lower on Friday as investors fretted about a potential global trade war.

Trump said on Thursday that a plan for tariffs of 25 percent on steel imports and 10 percent on aluminium products were designed to safeguard American jobs in the face of cheaper foreign products and would be formally announced next week.

“When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win,” Trump tweeted on Friday.

“Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!” he wrote. It was not clear which country he was referring to.

The prospect of retaliation from Canada, China and Europe sent world stocks tumbling towards a 2.5 percent weekly loss as investors turned to traditional safe havens such as government bonds, gold and the Japanese yen.

ArcelorMittal SA, the world’s biggest steelmaker, slumped nearly 5 percent and shares in automakers such as Fiat Chrysler suffered on concerns U.S. tariffs could increase the cost of key materials used in cars.