And on the day of the Trump administration's announcement, Canada and Mexico each published tariff lists detailing plans to hit American exports of steel, aluminium, sausages, pizza and whiskey, among other things.
The steel and aluminum tariffs could also complicate the administration's efforts to renegotiate the North American Free Trade Agreement with Canada and Mexico, a pact that Trump has condemned as a job-killing "disaster". The Dow Jones Industrial Average lost 1 percent and the S&P 500 shed 0.69 percent.
The world's largest economies stood on the brink of an all-out trade war as the EU, Canada and Mexico drew up retaliatory measures to Washington's stinging steel and aluminium tariffs that came into effect on Friday.
New tariffs imposed by the United States have been condemned by German business and political leaders, who say a trade war will damage economic growth and prosperity.
Liam Fox has condemned Donald Trump's steel and aluminium tariffs as "patently absurd" but has insisted the President's "protectionism" and apparent disregard for the United Kingdom economy will not affect a post-Brexit trade deal.
'We lose over $100 billion a year with Mexico, ' he said.
"The fact that the USA would impose tariffs because of that isn't that surprising", Fukaya said. The interbank rate dropped 0.93% to 19.91 pesos to the dollar, while banks were selling pesos for as much as 20.35 to the dollar. It did not announce details, but the bloc has previously threatened 25% tariffs on United States products such as motorcycles, denim, cigarettes, cranberry juice and peanut butter. Shares of Harley-Davidson Inc fell 2.17 per cent and Brown-Forman Corp, maker of Early Times and other bourbon brands, lost 2.1 per cent.
EU members have given broad support to a European Commission plan to set duties on €2.8bn ($3.4bn) of United States exports if Washington ends tariff exemptions.More news: India court halts expansion of Vedanta's copper smelter after protest killings
Meanwhile, the European Union, concerned over the impact of Trump's decision and a deepening tit-for-tat on the subject between the United States and China, lodged legal challenges against the two countries with the World Trade Organization (WTO) on Friday.
"Americans remain our partners, friends, and allies", Trudeau said.
Trump imposed the tariffs in March as part of an effort to protect USA industry and workers from what he described as unfair global competition, a key theme of his "America First" agenda. It has demanded permanent exemption from any new tariffs.
Freeland pointed out that 50 per cent of American steel exports go to Canada, calling her government's countermeasures "meaningful". Shares of Century aluminium Co jumped 3.3 percent but Alcoa Corp shed 0.9 percent.
The US administration also launched a national security investigation last week into vehicle and truck imports, using the same 1962 law it has applied to curb incoming steel and aluminum.
"What they can do, we're able to do exactly the same", he said yesterday after learning of President Trump's decision when he was passed a note halfway through a speech.
German MEP Bernd Lange, who chairs the European Union's worldwide trade committee, has said the tariffs are "illegal" and insisted the EU would "make some countermeasures, no doubt about".
Mr Jones, who is in Washington meeting business leaders and politicians, said: "I want to see fewer obstacles to trade, more cooperation, more internationalism, to help our economies continue to grow".