Trump's Tariffs on Steel and Aluminium Take Effect; EU and Canada Respond

Synopsis

On March 12, Trump’s tariffs on steel and aluminium imports commenced, prompting immediate retaliatory actions from the EU and Canada. The EU targets $28 billion in US imports, while Canada imposes tariffs worth $29.8 billion. Trade discussions may resume amid escalating tensions.

Key Takeaways

Trump reinstates a 25% tariff on steel.
Aluminium tariffs increased from 15% to 25%.
No exemptions for countries this time.
EU targets $28 billion in US imports.
Canada imposes $29.8 billion in retaliatory tariffs.

Washington, March 12 (NationPress) The tariffs imposed by US President Donald Trump on steel and aluminium imports from all countries took effect on Wednesday morning, prompting immediate retaliatory measures from both the European Union and Canada.

Trump has reinstated a 25 percent tariff on steel and increased the aluminium tariff to 25 percent from 15 percent.

In contrast to his previous term, no nations are exempt from these tariffs this time.

Earlier this month, Trump also targeted Canada, Mexico, and China with distinct tariff increases, citing issues related to illegal migration (excluding China) and the opioid fentanyl. A third set of tariffs is anticipated in April under Trump’s reciprocal taxation framework.

The EU has indicated it is focusing on $28 billion worth of imports from the US, roughly equivalent to the estimated value of the EU's steel and aluminium exports to the US affected by the tariffs. The EU’s response will unfold in two phases. The initial phase involves retaliatory tariffs announced in response to Trump’s earlier tariffs, which were suspended during President Joe Biden’s term, with that suspension set to expire in April. This phase also includes new tariffs on boats, bourbon, and motorcycles. The second phase will commence two weeks later.

Simultaneously, Ursula von der Leyen, President of the European Commission, mentioned to reporters that she had instructed her officials to reopen trade discussions with US representatives. "We firmly believe that amid a world filled with geo-economic and political uncertainties, imposing such tariffs is not in our mutual interest," she stated.

Canada, the largest foreign supplier of steel and aluminium to the US, will impose retaliatory tariffs amounting to $29.8 billion (Canadian dollars) starting Wednesday.

There has been no official comment from the White House regarding the EU's tariffs, although Trump has generally warned of even steeper tariffs in response to retaliatory actions from trading partners.