In a bold move on Monday, U.S. President Donald Trump signed an executive order slashing steel and aluminum imports tariffs to a hefty 25%. This decision has set off a wave of frustration among major trading partners, including the European Union, Canada, and Mexico.
Starting March 4, the new tariffs will apply \"without exceptions or exemptions,\" Trump declared. \"That's all countries, no matter where it comes from, all countries,\" he emphasized to reporters. However, he hinted at considering an exemption for Australia due to its trade deficit with the U.S.
But that's not all! Trump is also rolling out a new North American standard requiring steel to be \"melted and poured\" and aluminum to be \"smelted and cast\" within the region. This move aims to prevent imports of minimally processed metals that dodge other tariffs.
The impact doesn't stop at raw materials. The tariffs will now extend to downstream products made with foreign steel, such as structural steel, aluminum extrusions, and steel strands for pre-stressed concrete. A White House official confirmed these changes.
Speaking from the White House, Trump mentioned that this tariff hike is just the beginning. He plans to announce reciprocal tariffs on any country imposing duties on U.S. goods within the next two days. Potential targets include cars, semiconductor chips, and pharmaceuticals.
Throwback to 2018, Trump's previous administration also slapped similar tariffs on steel and aluminum from Canada, Mexico, and the EU, which led to swift retaliations. Back then, Brussels responded by taxing U.S. goods like whiskey, motorcycles, and orange juice. While tariffs on Canada and Mexico were lifted the following year, the EU's import taxes lingered until 2021, driving up costs for American car makers and fizzy drink producers, ultimately affecting consumers.
Stay tuned as this trade saga unfolds, impacting global markets and everyday products!
Reference(s):
Trump raises tariffs on aluminum, steel, sparking widespread outrage
cgtn.com
