Trump’s tariffs on steel and US President Donald Trump has imposed tariffs on steel and aluminium imports, a move that is expected to escalate tensions with America’s major trading partners.
The new rules will impose a 25% tariff on steel and aluminium imported into the US and will end existing exemptions for all countries.
In response, the European Union (EU) has announced retaliatory tariffs on billions of euros worth of US goods.
Trump hopes the tariffs will boost US steel and aluminium production. But critics say they will raise prices for US consumers and slow economic growth.
The American Iron and Steel Institute (AISI), which represents US steelmakers, welcomed the tariffs, saying they will create jobs and boost domestic steel production.
The group’s president, Kevin Dempsey, said the move would end the system of exemptions, exceptions and quotas used by foreign producers to avoid tariffs.
Dempsey added, “AISI applauds the President’s move to restore the integrity of the steel tariffs and implement a robust program to address unfair trade practices.”
Trump’s tariffs on steel and The United States is a major importer of aluminum and steel, and Canada, Mexico and Brazil are among the largest suppliers of these metals.
There are no exceptions
Other countries have responded immediately.
Britain’s Trade Minister Jonathan Reynolds said he was disappointed and “all options are open” to respond in the national interest.
The European Commission said in a statement that it was imposing retaliatory tariffs on 26 billion euros (21.9 billion pounds, $28.3 billion) worth of US goods.
Australian Prime Minister Anthony Albanese said the Trump administration’s decision to impose the new tariffs was “completely unfair.”
He added, “This goes against the spirit of the enduring friendship between our two countries and is completely contrary to the benefits our economic partnership has provided for more than 70 years.”
Recession fears
The tariffs mean that American businesses will have to pay a 25% tariff on metals imported into the country.
This will increase costs for many American industries, including aerospace, auto manufacturing and construction.
Some economists warn that the tariffs could help the American steel and aluminum industries but will hurt the overall economy.
