A new era of trade tension has been sparked by the US imposing duties on steel and aluminum imports, effectively escalating the global trade war initiated by President Donald Trump. As of Wednesday, tariffs of 25% apply to all steel and aluminum imports, with no exceptions or exemptions granted. This immediate action has drawn swift and stern responses from several key trading partners, who have not hesitated to announce retaliatory measures.
Trump’s original tariffs on metals imports have now fully taken effect, with duty-free quotas and product exclusions having expired and the aluminum duty increased to 25%. In addition to a broader imposition, specific tariffs have been leveled against Canada, Mexico, and China, and plans are in place for further taxes on imports from the European Union, Brazil, and South Korea, beginning April 2.
The rationale behind these taxes is to bolster the US metals industry and create new jobs. However, the seesaw nature of these tariff threats has sent shockwaves through the markets, raising concerns about an economic slowdown and higher costs for consumers.
In response, the European Commission quickly announced counter duties on $28 billion worth of US goods, set to take full effect by April 13. Commission President Ursula von der Leyen emphasized that this measure matches the economic scope of the US tariffs and reiterated the EU’s commitment to remaining open to negotiations. She also expressed the EU’s belief that imposition of tariffs is not in the common interest when faced with geopolitical and economic uncertainties.
Canada, the US’s largest foreign supplier of steel and aluminum, has stated it is considering reciprocal actions. In a similar vein, British Business and Trade Secretary Jonathan Reynolds indicated that all options are “on the table” for a national interest response. Australian Prime Minister Anthony Albanese condemned the move as unjustified and contrary to the spirit of Australia’s relationship with the US, though he ruled out immediate retaliation.
South Korea, however, has shown a more constructive approach, with two leading steelmakers considering investments in US facilities, potentially validating Trump’s claim that his tariffs are attracting foreign investment to the country. This development highlights the complex and multifaceted nature of international trade relations in the context of protectionist measures.
Source: https://www.aljazeera.com/news/2025/3/12/global-trade-war-intensifies-as-us-tariffs-on-metals-imports-take-effect?traffic_source=rss
