The U.S. recent decision to hike tariffs on steel and aluminum from 25% to 50% has turned into an international drama. Experts warn that such a steep increase could drive up the cost of everyday items like cars 🚗 and home appliances, making life more expensive for everyone.
Economists like Kyle Handley from the University of California, San Diego note that 25% tariffs were already significant, so doubling that rate is bound to hit hard. With steel making up about 60% of a car’s weight, even a minor price increase in materials can translate into an extra $2,000 to $4,000 on new vehicles.
Not only U.S. industries are feeling the pinch. Major trading partners are pushing back. In Mexico, President Claudia Sheinbaum described the new tariffs as "unfair" and "unsustainable," stressing that the measures lack legal grounding given the robust free trade ties between the two nations. Mexican authorities are already planning meetings with industry leaders and gearing up for negotiations.
Meanwhile, voices in Canada and Europe are also sounding the alarm. Canada's largest union, Unifor, called for urgent government action to protect investment in steel, aluminum, and auto sectors. European Commissioner Maros Sefcovic warned that the tariff escalation risks derailing recent progress in trade talks, prompting the EU to prepare countermeasures.
This unfolding saga is a vivid reminder of how interconnected our global economy is. What starts as a policy decision in one country can ripple out, affecting international trade and everyday consumer costs. Stay tuned as we follow and break down this real-life trade thriller – it’s like a plot twist in your favorite series! 😮
Reference(s):
cgtn.com
