US tariffs on steel, aluminum take effect, triggers retaliation

Donald Trump’s administration has enforced tariffs on all steel and aluminum imports into the United States, escalating global trade tensions.

The 25 percent duty took effect on Wednesday, with no exceptions or exemptions, prompting swift objections and retaliatory measures from trading partners.

These tariffs were implemented as previous exemptions, duty-free quotas, and product exclusions expired. Additionally, the duty on aluminum imports was raised from 10 percent. Separate tariffs were imposed on Canada, Mexico, and China, with plans to introduce “reciprocal” rates on imports from the European Union, Brazil, and South Korea beginning April 2.

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Trump asserts that these measures will grow the U.S. metals industry and generate jobs. However, his fluctuating tariff policies have unsettled markets, and raised concerns about increasing consumer prices.

In response, the European Commission swiftly announced counter-tariffs on $28 billion (€26 billion) worth of U.S. goods, including tariffs on boats, bourbon and motorbikes. The measures, which will come into force in April, are “swift and proportionate,” it said in statements.

“This matches the economic scope of the US tariffs,” Ursula von der Leyen, president of the European Commission, said in a statement, adding that the regime would be imposed in two steps and be fully implemented by April 13.

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The head of the EU executive also reiterated the bloc’s belief that Trump’s push to overturn global trade norms is damaging to Western unity in the face of rising challenges.

“We will always remain open to negotiation,” she said. “We firmly believe that in a world fraught with geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs.”

Canada, the biggest foreign supplier of steel and aluminium to the US, said it is considering reciprocal actions.
Jonathan Reynolds, British Business and Trade Secretary said “all options were on the table” to respond in the national interest.

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In Australia, Prime Minister Anthony Albanese denounced the move as “entirely unjustified … and against the spirit of our two nations’ enduring friendship” but ruled out reciprocation.

Meanwhile, two leading South Korean steelmakers announced they were considering investing in new facilities in the US, supporting Trump’s claim that his tariffs are encouraging foreign investment in the country.

The European Union, hit for the first time by higher US tariffs since Trump returned to the White House, retaliated within hours with countermeasures on US goods exports.

The tariffs on steel and aluminum mark the first time in Trump’s second term that a set of tariffs has been applied to all countries.