Mexico, Canada and the European Union on Tuesday condemned U.S. President Donald Trump's decision to impose tariffs on all steel and aluminum imports next month, a move that has fanned fears of a trade war as business and political leaders braced for yet more trade duty announcements from the new administration.

Trump has said higher tariffs would spur companies to create more auto sector jobs in the U.S. — but economists are skeptical.

Mexico's government on Tuesday questioned the fairness of a 25% tariff ordered by U.S. President Donald Trump on its steel and aluminum imports, stressing that Mexico buys more steel from the U.S. than it exports to its northern neighbor.

Canada, Mexico and the EU on Tuesday slammed U.S. President Donald Trump's "unjustified" decision to impose tariffs on steel and aluminum imports, which has raised fears of a broader trade war. Trump signed executive orders to impose 25% tariffs on imports of the metals starting March 12, triggering a flurry of angry reactions.

The 25% tariff on steel and aluminum imports from Mexico ordered by U.S. President Donald Trump "is not justified" because the U.S. runs a steel and aluminum trade surplus with Mexico, Mexican Economy Minister Marcelo Ebrard said on Tuesday.

Mexico will start consultations with the US government to explain why it considers the steel and aluminum tariffs ordered by President Donald Trump as “not justified,” said Economy Minister Marcelo Ebrard.