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. The White House has announced that it will stop giving exemptions to steel and aluminum tariffs for the European Union, Mexico, and Canada.
Boeing was the biggest drag on the Dow Jones Industrial Average, which was down 0.95 per cent.
USA tariffs of 25 percent on steel imports and 10 percent on aluminium from the affected countries came into effect at midnight in Washington - 06.00 Central European Time (CET).
The U.S.is still renegotiating the North American Free Trade Agreement (NAFTA) with Mexico and Canada.
According to Navarro, the president's decision to end the exemptions is not about China or unfair trade but more about defending the USA against countries who are running a large trade surplus at the expense of American jobs.
Ross said NAFTA negotiations can continue even if retaliatory measures are taken.
The European Union, Canada and Mexico said Thursday that they will respond to new USA tariffs on steel and aluminum with punitive measures targeting American products worth billions of dollars.
Chrystia Freeland, Canada's Minister of Foreign Affairs, outlined the country's retaliation plan on Thursday: She said that Canada will place tariffs on American goods, including steel and aluminum.
Mexico's list of proposed tariffs includes cranberries.
Mexico, too, said it would impose retaliatory duties on a variety of USA goods, including steel and a host of agricultural goods, including pork, apples and various cheeses.
The Mexican peso dropped about 1 per cent and the Canadian dollar shed about 0.6 per cent.
Viral video shows police officer repeatedly punching woman on New Jersey beach
CBS New York reports video of Saturday's incident shows an officer clubbing the woman's head twice as she's down on the sand. Her attorney says the officers overreacted and used excessive force. "My daughter is right here seeing this", she said.
One effect of today's developments was further pressure on the peso, which fell to its weakest level in 15 months.
The EU had already publicly announced that in the event tariffs did go ahead, it would impose levies on Levi-made jeans, Harley-Davidson motorbikes and bourbon whiskey. European Commission President Jean-Claude Juncker told AP that "it's totally unacceptable that a country is imposing unilateral measures when it comes to world trade".
The UK must not allow President Trump to "bully" his trading partners, the shadow worldwide trade secretary has said, amid fears of a looming trade war over U.S. tariffs on metals imports.
Trump imposed the steel and aluminum penalties under a 1962 law that gives the president broad power to increase or reduce tariffs on goods deemed critical to national security.
European Union officials say the total value of goods targeted is a dollar for dollar response to U.S. tariffs. He estimated the US tariffs would affect $4 billion in trade between the two countries.
The three allies were previously given temporary exemptions from the duties - 25 percent on steel imports and 10 percent on aluminum.
Many trade experts argue the U.S. is hitting the wrong targets, as the worldwide glut of steel and aluminium is largely blamed on excess production in China.
Tariffs of 25 percent on steel imports and 10 percent on aluminum will be imposed on the European Union.
"It is a sad day for worldwide trade", Guajardo said.
And speaking to reporters, Macron described the United States move as "a mistake in many ways because it responds to existing global imbalances in the worst way - by breaking up and creating economic nationalism".