Trump Enforces Sweeping Steel and Aluminum Tariffs Without Exceptions, Sparking Global Trade Tensions, Market Volatility, and Retaliatory Measures from Key U.S. Trading Partners
WASHINGTON (AFP) – The United States expanded its tariff measures on Wednesday, enforcing sweeping duties on steel and aluminum imports without exceptions, despite international efforts to avoid them.
President Donald Trump’s 25% tariffs on both metals are expected to drive up costs across industries, from automobiles to home appliances, potentially raising consumer prices.
“It wouldn’t surprise me to see the tariffs pretty quickly show up in prices,” said Clark Packard, a research fellow at the Cato Institute, noting the heavy impact on auto manufacturing and construction.
The European Commission swiftly announced retaliatory tariffs set to take effect on April 1, denouncing the U.S. restrictions as “unjustified.” Commission President Ursula von der Leyen stated, “As the U.S. applies tariffs worth $28 billion, we are responding with countermeasures of equal value.”
Trump’s aggressive trade stance has already strained relations with major U.S. partners, including Canada, Mexico, and China. While a partial rollback was granted for Canada and Mexico under the USMCA, the latest tariffs will hit Canadian exports hard, as the country supplies nearly half of U.S. aluminum imports and 20% of its steel.
Markets reacted with volatility, with Wall Street tumbling for a second straight day amid fears of economic downturn. However, Trump dismissed concerns, insisting the economy remains strong.
Escalating Trade Tensions
In a dramatic turn, Trump threatened to double tariffs on Canadian steel and aluminum to 50% just hours before implementation. Meanwhile, Ontario had planned retaliatory electricity surcharges on three U.S. states but backed down after negotiations with Washington.
A high-stakes meeting between Ontario Premier Doug Ford and top U.S. officials is scheduled in Washington on Thursday to discuss trade disputes ahead of the April 2 reciprocal tariff deadline.
White House senior counselor Peter Navarro acknowledged the volatility of Trump’s trade policies, calling the transition “bumpy” but insisting it is part of a broader negotiation strategy.
Uncertain Future
Even before the tariffs took effect, U.S. manufacturers scrambled to secure domestic suppliers, with some steel and aluminum producers raising prices in anticipation.
While certain American manufacturers welcome the tariffs as a boost to domestic industry, others warn they will drive up costs and disrupt supply chains.
With further trade measures expected from April 2, Trump’s tariff strategy signals more turbulence ahead for global markets and international relations.
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