The trade conflict between the United States and its international partners is set to escalate due to the imposition of new tariffs on steel and aluminum imports.
President Donald Trump is moving forward with his plan to implement ‘catastrophic’ tariffs on the US’ trading partners, a decision he enacted through an executive order shortly after taking office.
This move occurs amid Trump’s allegations that Canada, Mexico, and China have not adequately stopped a ‘flow of illicit drugs’ across US borders, with immigration also cited as a reason for these tax measures.
The newly implemented tariffs on steel and aluminum are expected to further strain relations with America’s trading partners.
The tax increase introduces a 25 percent duty on these metals entering the US, effectively eliminating all prior country exemptions overnight.
Canada is especially upset by these measures, as Trump has threatened to raise US tariffs on the nation’s steel and metal imports to 50 percent.
In response to potential retaliatory counter-tariffs, the Trump administration opted to step back.
Ontario Premier Doug Ford has been at the forefront of the opposition, threatening to raise electricity prices by 25 percent, which would add approximately $100 monthly to the bills of 1.5 million Americans, or even cut off power to neighboring states like Minnesota, New York, and Michigan.
Despite these actions, Canada, along with Mexico and Brazil, will be heavily impacted by the US’ new 25 percent tariffs on steel and aluminum, as these countries are major suppliers of these metals to the US.
The UK’s trade minister, Jonathan Reynolds, expressed disappointment with the move, while Australian Prime Minister Anthony Albanese labeled the decision as ‘entirely unjustified.’
“It’s against the spirit of our two nations’ enduring friendship and fundamentally at odds with the benefits that our economic partnership has delivered over more than 70 years,” he further commented.
The European Union has announced plans to impose retaliatory duties on 26 billion euros ($28.3 billion) worth of US goods in retaliation.
However, President Trump expressed hope that these increases will provide a much-needed boost to domestic steel and aluminum production.
The American Iron and Steel Institute (AISI), which represents US steelmakers, is in favor of the plan, asserting it will create jobs and enhance steel manufacturing nationwide.
Kefvin Dempsey, AISI president, stated: “AISI applauds the president’s actions to restore the integrity of the tariffs on steel and implement a robust and reinvigorated program to address unfair trade practices.”
Critics, however, argue that the hikes could lead to increased prices for US consumers and potentially hinder economic growth, particularly in sectors like aerospace, automotive manufacturing, and construction.