Mexico, Canada, and the European Union expressed their disapproval on Tuesday regarding U.S. President Donald Trump‘s announcement to implement tariffs on all steel and aluminum imports starting next month, a decision that has heightened concerns about a potential trade conflict.
On Monday, Trump signed proclamations that increased the U.S. tariff on aluminum from 10% to 25%, while also removing country-specific exemptions and quota agreements, along with numerous product-specific tariff exclusions for both metals.
These tariffs, set to take effect on March 12, will impact millions of tons of steel and aluminum imports from Canada, Brazil, Mexico, South Korea, and other nations that previously entered the U.S. market duty-free due to these exemptions.
Mexican Economy Minister Marcelo Ebrard criticized the tariff decision on Tuesday, labeling it as “not justified” and “unfair.” Meanwhile, Canadian Prime Minister Justin Trudeau deemed the tariffs “unacceptable.”
European Commission President Ursula von der Leyen also condemned the action, stating that the 27-member bloc would respond with “firm and proportionate countermeasures.” Von der Leyen was in Paris on Tuesday for an AI summit, where she met with U.S. Vice President JD Vance.
Trump explained that the new measures would clarify the tariff structure on metals, asserting, “It’s 25% without exceptions or exemptions. That’s all countries, no matter where it comes from, all countries.”
Trump announced that he would be making further announcements regarding reciprocal tariffs on all nations that impose duties on U.S. goods within the next two days. He also indicated that he is considering tariffs on automobiles, semiconductors, and pharmaceuticals. When questioned about potential retaliatory actions from other countries in response to his new tariffs, Trump stated, “I don’t mind.”
READY TO RETALIATE
In figures that are likely to further frustrate Trump, Germany’s trade surplus with the U.S. reached a record high of 70 billion euros ($72.3 billion) last year, according to the German statistics office. European Commission President Von der Leyen expressed her deep regret over the U.S. decision, emphasizing that tariffs are detrimental to both businesses and consumers. Over the past decade, EU steel exports to the U.S. have averaged approximately 3 billion euros ($3.1 billion) annually. “Unjustified tariffs on the EU will not go unanswered; they will provoke firm and proportionate countermeasures. The EU will take action to protect its interests,” she stated.
One potential response from the EU could involve reactivating the tariffs that were initially imposed in 2018 but were suspended under a truce negotiated between Von der Leyen and former U.S. President Joe Biden. The EU’s tariffs on U.S. products, including bourbon, motorcycles, and orange juice, are currently on hold until the end of March. The American Chamber of Commerce to the EU (AmCham EU), which represents U.S. companies operating in Europe, also criticized the decision, stating it could harm jobs, prosperity, and security on both sides of the Atlantic. “The repercussions will extend beyond the steel and aluminum sectors, affecting all businesses that depend on these materials throughout the supply chain,” it added in a statement.
Trump’s recent trade measures drove gold prices to an all-time high on Tuesday, fueled by safe-haven demand during Asian trading before experiencing a decline.
CANADA TO DEFEND ITSELF
In 2023, steel imports represented approximately 23% of total American steel consumption, as reported by the American Iron and Steel Institute, with Canada, Brazil, and Mexico being the primary suppliers. Canada, leveraging its abundant hydropower resources for metal production, accounted for nearly 80% of U.S. primary aluminum imports in 2024.
During the Paris artificial intelligence summit, Prime Minister Trudeau emphasized Canada’s intention to underscore the adverse effects of U.S. tariffs, asserting that the country’s response would be resolute if required. “Canadians will stand up strongly and firmly if we need to,” he stated.
Additionally, Trump plans to introduce a new North American standard mandating that steel imports be “melted and poured” and aluminum be “smelted and cast” within the region. This measure aims to limit U.S. imports of minimally processed metals from China and Russia that evade existing tariffs.
Although China exports only a small amount of steel to the U.S., it is a significant contributor to global excess steel capacity, according to U.S. officials. They argue that subsidized production in China compels other nations to increase their exports and leads to the transshipment of Chinese steel through third countries to bypass tariffs and trade restrictions.
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