Trump’s 25% Tariffs on Steel and Aluminum Take Effect Worldwide as Europe Vows Retaliation

tariff on steel and aluminum imports marks a significant shift in U.S. trade policy, aiming to reshape global commerce by removing previous exemptions . This decision has far-reaching implications, particularly for major trading partners such as Canada and the European Union. While the tariffs are intended to bolster domestic production and create jobs within the U.S., they have also raised concerns about potential economic repercussions, including increased costs for manufacturers that rely on these metals as raw materials .

Trump reversed a threat to double the rate on steel and aluminum from Canada, the US’s top source of imports for the metals. Instead, steel and aluminum from there will be subject to the 25% levy.

“It may go up higher,” Trump said Tuesday of the 25% tariff on all countries’ steel and aluminum sent to the US at an event hosted by the Business Roundtable. “The higher it goes, the more likely it is they’re going to build,” he said, referring to more companies moving their production to the US.

Doug Ford agreed to pause surcharges on electricity for US customers.

In response to these tariffs, the European Union announced plans for retaliatory measures amounting to approximately $28 billion on various goods, including steel and agricultural products . This escalation of trade tensions could lead to a broader economic slowdown as businesses across sectors like aerospace and automotive manufacturing grapple with rising input costs. Critics argue that while the tariffs may protect certain industries in the short term, they threaten long-term economic stability by increasing consumer prices and straining international relations.

Canada and Mexico had avoided the import duties on the metals after they agreed to Trump's demand for a revamped North American trade deal in 2020.

Other trading partners of the US had import quotas supplant the tariffs. There were also thousands of product-specific exclusions.

Mr. Trump’s new confrontation with Canada tariffs sent jittery markets tumbling, with major indexes closing down for the day. In addition to doubling the metal tariffs, the president threatened more levies if Canada didn’t drop various tariffs it imposes on U.S. dairy and agricultural products.

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Sarah H

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