Canada and Mexico gave their response to US decision to impose tariffs to steel and aluminum import, while Europe is ready to kick back as well, Reuters reports. Steel tariffs equal to 25%, aluminum to 10%. They will be in effect from June 1.

As a result index Dow Jones lost yesterday 1%. Shares of American industrial giants Boeing and Caterpillar fell 1,7% and 2,3% correspondingly.

Canada, the US largest steel importer, promised to apply tariffs to US products valued at C$16,6 billion, including whiskey, orange juice, steel, aluminum and other.

US position also threatens future of North American Free Trade Agreement (NAFTA) with Canada and Mexico.

Mexico is going to take equivalent measures to the whole range of farm and industrial products from the US, including pork, apple, grapes and cheese.

Index S&P 500 for packaged food and meat companies dropped by 2%. Shares of Tyson Foods Inc, Campbell Soup Co McCormick & Co Inc fell by 3,9%, 2,6% and 2,9% correspondingly.

Mexican peso and Canadian dollar went down.

EU promised to impose tariffs to Harley Davidson motorcycles and bourbon. Motorcycle maker’s stocks lost 2,2%, bourbon manufacturer’s shares dropped by 2,1%.

US Chamber of Commerce has already warned that such trading practices might result in job losses over 2 million.

Temporary exemption from tariffs was granted to some countries, while only several countries received permanent exemption, including Australia, Argentina and South Korea.