WASHINGTON: President Donald Trump’s increased tariffs on all US steel and aluminum imports took effect on Wednesday (Mar 12), stepping up a campaign to reorder global trade in favor of the US and drawing swift retaliation from Canada and Europe.
Trump’s action to bulk up protections for American steel and aluminum producers restores effective tariffs of 25 per cent on all imports of the metals and extends the duties to hundreds of downstream products, from nuts and bolts to bulldozer blades and soda cans.
US Commerce Secretary Howard Lutnick said nothing could stop the tariffs and Trump would impose trade protections on copper as well.
Canada, the biggest foreign supplier of steel and aluminum to the United States, announced 25 per cent retaliatory tariffs on goods including steel, aluminum, computers, sports equipment and other products worth C$29.8 billion in total.
Trump’s hyper-focus on tariffs since taking office in January has rattled investor, consumer and business confidence in ways that economists worry could cause a US recession and further lag on the global economy.
The European Commission, the executive arm of the European Union charged with coordinating trade matters, responded swiftly, saying it would impose counter tariffs on up to €26 billion (US$28 billion) worth of US goods – often with more symbolic than economic impact – from next month.
Nevertheless, Commission President Ursula von der Leyen told reporters she had tasked Trade Commissioner Maros Sefcovic to resume talks with US officials on the matter.
“We firmly believe that in a world fraught with geoeconomic and political uncertainties, it is not in our common interest to burden our economies with such tariffs,” she said.
China’s foreign ministry said Beijing would take all necessary measures to safeguard its rights and interests, while Japan’s Chief Cabinet Secretary Yoshimasa Hayashi said the move could have a major impact on US-Japan economic ties.
Close US allies Britain and Australia criticised the blanket tariffs, with Australian Prime Minister Anthony Albanese saying the move was “against the spirit of our two nations’ enduring friendship”. However, both countries ruled out immediate tit-for-tat duties.
The other countries most affected by the tariffs are Brazil, Mexico and South Korea, which all enjoyed some level of exemptions or quotas.
