Trump imposes 25% tariffs on steel and aluminum: EU reaction and market consequences
U.S. President Donald Trump has announced new 25% tariffs on steel and aluminum imports, which could lead to trade conflicts with Canada, Mexico, and the EU.
Photo: Gage Skidmore, CC BY-SA 2.0
On Sunday, U.S. President Donald Trump stated that he is imposing new 25% tariffs on steel and aluminum imports. He announced this to reporters aboard Air Force One on his way to the Super Bowl in New Orleans, according to Reuters.
The official announcement is expected on Monday, and by Tuesday or Wednesday, Trump is set to introduce measures for reciprocal tariff regulation.
Canada, Brazil, and Mexico are the largest steel suppliers to the U.S., while Canada is also the primary exporter of aluminum.
Canadian Minister of Innovation François-Philippe Champagne expressed concerns, noting that these metals are critical for the U.S. defense, shipbuilding, and automotive industries.
Trump stated that the new tariff regime will make the American steel industry more competitive. He emphasized that if other countries impose tariffs on American goods, the U.S. will do the same.
However, it remains unclear how these new measures will impact existing trade agreements with the UK, the EU, and Japan.
Additionally, the president threatened to impose 25% tariffs on imports from Canada and Mexico if they do not take further steps to strengthen border control. The deadline for compliance is March 1.
Trump's decision has raised concerns among American manufacturers, especially in the automotive and spirits industries.
Chris Swonger, head of the Distilled Spirits Council, warned that potential EU retaliatory tariffs on American whiskey could have a detrimental impact on the industry.
Experts fear that an escalation of the tariff war could lead to a decline in production and higher prices for American consumers.
Meanwhile, on February 10, the European Union stated that it had not received official notification from the U.S. regarding additional tariffs on EU goods, including steel and aluminum, according to a statement published on the European Commission's website.
Brussels considers such measures illegal and threatening to economic relations. EU representatives noted that tariffs would increase costs for American businesses, trigger inflation, and destabilize the market.
The EU is prepared to take countermeasures to protect its companies and consumers. Experts warn that an escalation of the tariff war will harm both sides and lead to new economic risks.
Earlier, it was reported that a scandal erupted in the U.S.: unions of diplomats and USAID employees filed a lawsuit against the Trump administration, trying to prevent the agency’s liquidation and restore aid.
It also became known that the U.S. is imposing sanctions against the International Criminal Court after it issued an arrest warrant for Benjamin Netanyahu. Donald Trump stated that such actions by the ICC undermine the sovereignty of the U.S. and Israel, posing a threat to Israeli politicians.