BRUSSELS/BEIJING  - U.S. President Donald Trump said on Friday trade wars were good and easy to win, striking a defiant tone after global criticism of his plan to slap tariffs on imports of steel and aluminum that triggered a slide in world stock markets.

The European Union pledged firm counter-measures, China urged Trump to show restraint and Canada, the biggest supplier of steel and aluminum to the United States, said it would retaliate if it is hit by U.S. duties.

Trump said on Thursday that tariffs of 25 per cent on steel imports and 10 per cent on aluminum, designed to safeguard American jobs in the face of cheaper foreign products, 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 US$100 billion with a certain country and they get cute, don't trade anymore-we win big. It's easy!" the U.S. president wrote.

The European Commission, the EU executive, called the tariffs a blatant intervention that amounted to protectionism.

While promising to act "firmly", the European Union, which sees itself as a global counterweight to a protectionist-leaning Trump, made no mention of retaliation but spoke of counter-measures that confirm with World Trade Organization (WTO) rules.

"We see international trade relations as a win-win situation," a European Commission spokesman said.

"We don't see this as a situation where, like in a zero-sum game, one party loses because another party wins. Trade is beneficial for everyone. It needs to take place on the basis of rules and these rules are in place."

Safeguard measures, last deployed by Europe in 2002 after then U.S. President George W. Bush imposed steel import duties, would be designed to guard against steel and aluminum being diverted to Europe from elsewhere if U.S. tariffs come in.

But to conform with WTO rules such measures would have to apply to imports from all countries and could also hit producers from China, India, Russia, South Korea to Turkey.

EU SAFEGUARD MEASURES

The European Commission, the EU executive, called the U.S. tariffs a blatant intervention that amounted to protectionism and promised to act "firmly" in response.

The EU, which sees itself as a global counterweight to a protectionist-leaning Trump, made no mention of retaliation but spoke of countermeasures that conform with World Trade Organization (WTO) rules.

"We see international trade relations as a win-win situation," a European Commission spokesman said.

"We don't see this as a situation where, like in a zero-sum game, one party loses because another party wins. Trade is beneficial for everyone. It needs to take place on the basis of rules and these rules are in place."

Safeguard measures, last deployed by Europe in 2002 after then U.S. President George W. Bush imposed steel import duties, would be designed to guard against steel and aluminum being diverted to Europe from elsewhere if U.S. tariffs come in.

But to conform with WTO rules such measures would have to apply to imports from all countries and could also hit producers from China, India, Russia, South Korea to Turkey.

"A trade war between Europe and the United States will only have losers," said French Finance Minister Bruno Le Maire, adding that all options were on the table and he would discuss the issue with his German and British counterparts on Friday.

'PRETTY COMMITTED'

Steel has become an important focus for Trump, who said he would restore the U.S. industry and punish what he sees as unfair trade practices, particularly by China.

While U.S. officials said some details of the tariffs still needed to be ironed out, White House spokeswoman Sarah Sanders said on Friday the levels of 25 per cent for steel and 10 per cent for aluminum were not expected to change.

"This is something he's wanted to do for a while. Never say never, but I think he's pretty committed to moving this forward," Sanders told a press pool.

Republican U.S. senator Ben Sasse, who has been critical of Trump, said there were only losers in trade wars.

"Kooky 18th century protectionism will jack up prices on American families - and will prompt retaliation," he said in a tweet. "Make no mistake, if the president goes through with this it will kill American jobs."

The United States is the world's biggest steel importer, buying 35.6 million tonnes in 2017. Canada is the leading supplier, accounting for 16.7 per cent, followed by Brazil on 13.2 per cent and South Korea on 9.7 per cent.

Officials were unable to say immediately whether the tariffs would include imports from Canada and Mexico, Washington's partners in the North American Free Trade Agreement (NAFTA) which is being reworked.

"Should restrictions be imposed on Canadian steel and aluminum products, Canada will take responsive measures to defend its trade interests and workers," Foreign Minister Chrystia Freeland said, calling any trade restrictions "absolutely unacceptable".

Mining company Rio Tinto, the largest producer of aluminum in Canada, Alcoa Corp and the United Steelworkers union, which represents workers in the United States and Canada, all said Canada should be spared tariffs.

Although China accounts for only 2 per cent of U.S. steel imports, its massive industry expansion has helped produce a global steel glut that has driven down prices.

"China urges the United States to show restraint in using protective trade measures, respect multilateral trade rules, and make a positive contribution to international trade order," said Chinese Foreign Ministry spokeswoman Hua Chunying.

Asian steelmakers also worry that U.S. tariffs could result in their domestic markets being flooded with steel products that have nowhere else to go.

South Korea said it would keep talking to U.S. officials until Washington's plans are finalized.

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