President Donald Trump’s increased tariffs on all U.S. steel and aluminum imports took effect on Wednesday, stepping up a campaign to reorder global trade in favour of the U.S. and drawing swift retaliation from Canada and Europe.
According to Reuters, Trump’s action to bulk up protections for American steel and aluminum producers restores effective tariffs of 25% on all imports of the metals and extends the duties to hundreds of downstream products, from nuts and bolts to bulldozer blades and soda cans.
Trump’s hyper-focus on tariffs since taking office in January has rattled investor, consumer and business confidence in ways that economists worry could cause a U.S. recession and further lag on the global economy.
The European Commission, the executive arm of the European Union charged with coordinating trade matters, responded swiftly, saying it would impose counter tariffs on up to 26 billion euros ($28 billion) worth of U.S. goods — often with more symbolic than economic impact – from next month.
Nevertheless, Commission President Ursula von der Leyen told reporters she had tasked Trade Commissioner Maros Sefcovic to resume talks with U.S officials on the matter.
“We firmly believe that in a world fraught with geoeconomic and political uncertainties, it is not in our common interest to burden our economies with such tariffs,” she said.
Canada, the biggest foreign supplier of steel and aluminum to the United States, will announce C$29.8 billion in retaliatory tariffs on Wednesday, a Canadian official who declined to be named said.
China’s foreign ministry said Beijing would take all necessary measures to safeguard its rights and interests, while Japan’s Chief Cabinet Secretary Yoshimasa Hayashi said the move could have a major impact on U.S.-Japan economic ties.
Close U.S. allies Canada, Britain and Australia criticised the blanket tariffs, with Australian Prime Minister Anthony Albanese said the move was “against the spirit of our two nations’ enduring friendship.” However, he ruled out tit-for-tat duties, as did Britain.
The other countries most affected by the tariffs are Brazil, Mexico and South Korea, which all enjoyed some level of exemptions or quotas.
