U.S. President Donald Trump announced a sweeping 25% tariff on steel and aluminum imports this week, igniting immediate backlash from key trading partners and raising fears of a renewed global trade war. The policy, effective March 4, applies to all countries without exemptions, though Australia may negotiate relief due to its trade imbalance with the U.S.
Retaliation Looms
The European Union, Canada, and Mexico swiftly condemned the move, with retaliatory tariffs on U.S. goods expected to follow. Trump also revealed plans for reciprocal tariffs targeting countries that impose duties on American products, alongside potential new levies on cars, semiconductors, and pharmaceuticals.
New Rules Target Supply Chains
A 'melted and poured' standard for steel and 'smelted and cast' requirement for aluminum will soon apply to North American imports, aiming to prevent tariff evasion through minor processing abroad. The tariffs now extend to downstream products like structural steel and aluminum extrusions, which could raise costs for automakers and beverage companies.
History Repeating?
Similar 2018 tariffs led to EU countermeasures on U.S. whiskey, motorcycles, and orange juice. While lifted for Canada and Mexico in 2019, EU tariffs remained until 2021, costing U.S. consumers billions, according to the Tax Foundation. Analysts warn the latest measures risk similar economic fallout and supply chain disruptions.
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Trump raises tariffs on aluminum, steel, sparking widespread outrage
cgtn.com
