European Union will act against USA tariffs on steel, aluminum: Merkel

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It shows a standing Mrs Merkel, hands firmly planted on a table, staring down at U.S. president Donald Trump, who is seated with his arms folded.

German Chancellor Angela Merkel, center, speaks with President Donald Trump, seated at right, during the G7 Leaders Summit in La Malbaie, Quebec, Canada, on Saturday, June 9, 2018.

But it won't solve the differences, particularly on trade, with the European Union moving toward retaliatory tariffs from July on key USA goods.

Others, however, insisted that Trump looks like he's in control of the situation in the photo.

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Europe will not let Trump do "whatever he pleases", the German chancellor said, adding that "we will not allow ourselves to be deceived again and again". However, despite Trump's decision, Merkel insisted that she would continue working with him and at the same time, prepare the European Union to counter the United States tariffs on steel and aluminum just like Canada.

Speaking on German television Merkel also expressed regret about President Donald Trump's surprise decision to withdraw his endorsement of the recent G7 summit's final communique. "Instead, we will also act accordingly", Merkel said in an unusually combative tone.

The chancellor also addressed concerns that Trump would hit back by implementing tariffs on German vehicles, saying, "First of all, we'll try and see if we can prevent this".

Expectations for a breakthrough at the summit, however, are low, with US allies focused on avoiding rupturing the G7, which in its 42-year history has tended to seek consensus on major issues. If you look at what Canada, and Mexico, the European Union - all of them - have been doing to us for many, many decades.

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Hours after leaving the G7 summit on Saturday, Trump took to Twitter to assault the Canadian Prime Minister Justin Trudeau's "false statements" and instructed United States representatives to renege on the US' endorsement of the joint communique.

The German chancellor also said she is not ready to "give up on G7" but would seek dialogue with Russian Federation and try to "work very closely" with Japan, Canada, India and China. He reiterated his longstanding view that the USA has been taken advantage of in global trade, adding, "We're like the piggy bank that everybody's robbing, and that ends".

Mr Trump's bombshell announcement that he was backing out of the G-7 communique torpedoed what appeared to be a fragile consensus on the trade dispute between Washington and its top allies.

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