Donald Trump, president, said the United States would respond to the European Union’s measures against his fresh 25 % tariffs on steel and aluminum, putting the risk of a new increase in his world trade conflict.
” Of sure I’m going to respond”, Trump said Wednesday when asked by reporters at the , White House , if he would react. Our nation didn’t answer, which is the issue. Appear, the EU was established to profit from the US.
Trump did not specify which methods he may get. The EU and Canada immediately reacted to the government’s metal tasks, which took effect on Wednesday, and this sparked further negotiations with the Trump administration over lifting the trade taxes.
The European Commission  , which has offered the most robust response to Trump’s most recent business rude, offered the strongest response so far. It launched” sharp and equal measures” on , U. S.  , goods, reimposing combining actions from 2018 and 2020 and adding a new record of industrial and agricultural commodities. According to the EU, goods exports worth up to 26 billion euros ($ 28.4 billion ) will be subject to the EU’s countermeasures, which will match the economic potential of the , U. S.  , tariffs, it said.
In a statement, European Commission President Ursula von der Leyen and European Commission President Ursula von der Leyen said,” We deeply regret this calculate.” ” Taxes are income. They harm businesses, and users actually more.
On Wednesday, Canada  announced 25 % tariffs on about C$ 30 billion ($ 20.80 billion ) of U.S.-made products. The procedures may targeted steel and aluminum as well as other consumer products such as servers and sporting goods. The duties are in line with the new andnbsp, U.S. andnbsp, and will start on Thursday at 12:01 a.m., period, according to American Finance Minister, Dominic LeBlanc.
Trump’s decision, however, drew largely covert threats against American exports because most nations opted to negotiate instead of waging tariff wars for the time being. That absence of a quick and wide increase presages difficult talks in the months ahead over , the United States’ , need for loosely defined “reciprocal” tariffs set with each country separately.
Big Asian manufacturers, including , South Korea,  , Taiwan,  , Japan , and , Australia , delayed launching immediate retaliation after the evening deadline passed without any deductions being offered. The UK said it would be “rapidly negotiating a wider economic contract.” Brazil added that it would look into negotiating an alternative before considering retaliatory measures. Mexico stated that it would delay until further U.S. and U.S. tariff announcements are made after April 2 to listen.
China, which wasn’t directly targeted in the latest business volley, didn’t immediately respond — but it did summon , Walmart Inc., following accounts the , U. S.  , shop was urging Chinese suppliers to assist absorb higher costs.
U.S.  , companies rose after two weeks of steep deficits on the back of less-than-expected February prices data. Following a selloff that saw the S&, P 500 Index in the middle of a professional correction, stocks rose. But worry around Trump’s laws continued affect mood, with the , U. S.  , standard recently falling as , Canada , unveiled its retaliatory measures.
Trump’s decision to amplify his trade campaign comes at a dangerous time, seven weeks into his second term, in terms of politics. His swift effort to rewire the U.S. economy as a global manufacturing power has spooked financial markets, spooked consumers still betrayed by pandemic-era inflation, and sparked recession fears amid mounting uncertainty for corporate America.
Trump pressed on with the metals tariffs despite a flurry of last-minute lobbying from , U. S.  , stakeholders, including the country’s largest aluminum producer,  , Alcoa Corp.  , The company warned the tariffs would imperil tens of thousands of jobs while raising prices for Americans already feeling their household budgets squeezed.
The president acted with the backing of some domestic industry executives, who claim that the protectionist measures could boost profits for producers and U.S. producers and bring steel and aluminum jobs back from overseas.
Trump’s plan to “build significant barriers” around the U.S. economy includes steel and aluminum levies, which he has deemed necessary to rebalance a “ripping off” of the country’s global trading system. Yet his indecision on some duties has raised questions about his resolve.
Trump announced a month-long exemption for goods that are covered by the North American trade agreement last week, but he only allowed 25 % tariffs to go into effect on Canada, Mexico, and related countries. He also increased a similar tariff on China  to 20 % at the same time.
Trump’s steel and aluminum orders revive and expand his 2018 levies on the metals and prohibit exemptions for products made from either of them. That leaves raw steel and aluminum at risk in addition to the new tariffs, which are estimated to be applied to$ 150 billion worth of imported consumer goods, according to Global Trade Alert’s research.
In some months, less than half of imports were excluded by the tariffs because Trump’s first administration granted exclusions for major suppliers, including Canada, Mexico, Brazil, and the European Union. Administration officials have warned not to expect future carve-outs.
He has also ordered the Commerce Department to investigate trade restrictions, which is a crucial mineral for the global economy.
Tariff Thrutage
Anxiety that tariffs and Trump’s government downsizing push will stifle , U. S.  , growth has fueled a three-week stretch of volatility in global markets.
According to Kok Hoong Wong, head of institutional equities sales trading at , Maybank Securities , in , Singapore,” Traders and investors do feel the heat from these tariffs are rising.” We are “increasingly pricing in a trade conflict that is escalating.”
Trump’s advisers are crafting so-called “reciprocal” tariffs on trading partners worldwide that could take effect as soon as , April 2. Additionally, he is expected to pay duties on cars, semiconductors, pharmaceuticals, lumber, and agricultural products.
Many manufacturers in the United States have argued that Trump’s tariffs on steel and aluminum are unfairly aimed at dominating the sector, stifling exports from China, which produces more than it can consume at home. They argue the metal industry is critical to the , U. S.  , industrial base and national security.
According to Scott Paul, president of the Alliance for American Manufacturing, whose members include U.S. steelmakers and workers,” Strengthening the steel and aluminum tariffs will help incentivize companies to boost output, make new investments, and hire workers.” Making derivative steel products makes sense by including them to protect American companies that manufacture these products from unfair competition and importers from unfair competition.
The nation’s largest steelmakers, including , Nucor Corp.,  , United States Steel Corp.,  , Cleveland-Cliffs Inc.  , and , Steel Dynamics Inc, last week urged Trump to “resist” calls for carveouts, warning that previous exemptions prompted a surge of imports, causing prices to drop and their profits to shrink.
Trump’s 2018 tariffs, in addition to the exemptions, helped raise steel and aluminum prices and lower imports.
The U.S. steel industry is coming off its worst year since Trump’s first term, as a result of weak construction demand, inflation on input materials, and high borrowing costs that cost them money. While imports rose in 2024, they remained lower than 2022 and 2021. Steel inventories are near a multiyear high and are waiting in warehouses as the demand rises.
The aluminum industry faces a more complex challenge as a result of the tariffs. Unlike American steelmakers, aluminum producers have a greater global footprint. More than half of the metal used in the U.S. is produced in Canada, where Rio Tinto Group and Alcoa are the main producers.
According to people with knowledge of the discussions who asked not to be identified because they were private, Alcoa, Chief Executive Officer, William Oplinger, representatives, the president of the U.S. Aluminum Association, and others have recently been directly lobbying the Trump administration to avoid the added tariffs on Canadian imports.
Oplinger predicts devastating consequences from a 25 % tariff, including the loss of about 20, 000 direct , U. S.  , aluminum industry jobs and another 80, 000 indirect jobs.
According to economists, the tariffs are likely to increase costs for some domestic industries that are heavily dependent on foreigners for specialty steel. That includes the well-functioning oil industry, which uses steel pipes and other materials. Higher costs for steel and aluminum also could trickle down to consumers in the form of more expensive automobiles, appliances and even canned drinks.
Supporters of the president’s plan argue that the tariffs will ultimately encourage more manufacturing to the U.S. . Even the president has acknowledged that his broader tariff onslaught for U.S. consumers may suffer from some short-term economic pain, but administration officials claim extended tax cuts and more domestic energy production should help offset those costs.
Many nations that were affected by the new tariffs didn’t act in retaliation, but they were also unsatisfied with the actions. Australian Prime Minister , Anthony Albanese , told reporters that the Trump administration’s actions were “entirely unjustified” and an act of “economic self-harm”.
Albanese said,” This goes against the spirit of our two nations ‘ enduring friendship.” fundamentally in opposition to the advantages our economic partnership has provided for more than 70 years.
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