US President Donald Trump has announced plans to impose additional tariffs following his latest move to introduce import taxes on steel and aluminum, which has drawn retaliatory measures from the European Union (EU) and Canada.
Trump stated that he would respond to these counteractions with “reciprocal” tariffs on countries worldwide next month, asserting, “Whatever they charge us, we’re charging them.” This statement marks a significant intensification of the trade conflict that has unsettled financial markets amid concerns about economic impacts.
On Wednesday, Trump moved forward with broad tariffs of 25% on steel and aluminum while removing previous exemptions for certain countries. This action followed an earlier order increasing levies on Chinese imports to a minimum of 20%.
Leaders from Canada and Europe have deemed the new metal tariffs unjustified and have announced their own tariffs on a variety of US goods. Canada plans to implement a 25% tax on nearly C$30 billion ($20 billion) worth of US products, while the EU will raise tariffs on approximately €26 billion ($28 billion) of US goods, including boats and bourbon, set to take effect on April 1.
EU President Ursula von der Leyen described the response as “strong but proportionate,” emphasizing that “tariffs are taxes” and warning about the negative impact on businesses and consumers, which could jeopardize jobs and drive up prices.
Critics argue that while Trump aims to boost US production of steel and aluminum, the immediate consequence of high import taxes will likely result in increased prices for consumers and hinder economic growth.
Major food manufacturers, including Quaker Oats and Folgers Coffee, have requested exemptions for imports like cocoa and fruit that are not available domestically. The letter from the Consumer Brands Association highlighted the need for specific exemptions, citing ingredients like coffee and spices.
The introduction of these import taxes is also expected to impact demand for non-US-produced steel and aluminum, affecting manufacturers in other countries. The EU estimates that the latest tariffs influence around 5% of its total exports to the US, while about 90% of Canada’s steel and aluminum exports go to the US.
Following two days of market declines, US stock shares were mixed on Wednesday, with the Dow closing down 0.2% and the Nasdaq rising by 1.2%.
Trump, speaking alongside Irish Prime Minister Taoiseach Micheál Martin, reiterated his commitment to the trade fight, expressing dissatisfaction with EU trade policies. He raised concerns about legal penalties imposed on Apple and rules that he claims disadvantage US agricultural products and automobiles.
“We’re going to win that financial battle,” he declared, reiterating his threat to levy tariffs on European cars.
Credit: BBC News
