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‘No exceptions’: Donald Trump rolls out 25% tariffs on steel, aluminum imports
The 25 percent tariffs imposed by President Donald Trump on steel and aluminum are set to increase production costs across various industries.
The United States officially rolled out its expanded tariffs on steel and aluminum imports on Wednesday, enforcing the 25 percent duties with “no exceptions,” as promised by the White House.
The 25 percent tariffs imposed by President Donald Trump on steel and aluminum are set to increase production costs across various industries, including home appliances, automobiles, and beverage cans, which could eventually lead to higher prices for consumers.
Since returning to office, Trump has implemented significant tariffs on key US trade partners, including Canada, Mexico, and China. While some reductions were made for neighbouring countries, he has pledged new levies to take effect from April 2.
The new tariffs are expected to hit Canada hard, as it supplies around 50 percent of US aluminum imports and 20 percent of its steel imports, according to a recent analysis by EY’s chief economist, Gregory Daco.
In addition to Canada, Brazil and Mexico are significant steel suppliers to the US, while aluminum comes from nations like the United Arab Emirates and South Korea.
Wednesday’s new tariffs add to previously imposed duties, potentially raising the rate on certain steel and aluminum products from Canada and Mexico to 50 percent, unless they comply with the US-Mexico-Canada Agreement (USMCA).
Despite concerns over the impact of Trump’s trade policies and fears of a potential recession, which have contributed to a decline in financial markets, Trump downplayed the risks. He stated that he does not foresee a downturn and dismissed recent stock market losses.
Tensions rise as US, Canada exchange tariff threats
Trade tensions between the US and its neighbours escalated as President Trump threatened to double the tariff rate on Canadian steel and aluminum to 50 percent just a day before the levies were set to take effect.
In retaliation to previous US tariffs, Ontario, Canada’s province, imposed an electricity surcharge on three American states, prompting a furious response from Trump.
As both Washington and Ottawa exchanged sharp tariff warnings, trade relations grew more strained, with Trump pushing forward provocative plans to annex Canada's northern neighbor.
However, after negotiations, Ontario suspended the surcharge.
White House spokesman Kush Desai said Trump “used the leverage of the American economy” in order to “deliver a win for the American people.”
With AFP inputs
