Credit: AP
US President Donald Trump has officially increased tariffs on all steel and aluminium imports to 25%, as the global trade war escalates.
It’s the latest salvo in Trump’s attempt at correcting perceived trade imbalances and reigniting domestic manufacturing.
His announcement of the duties in February has left the US stock market teetering and heightened fears of economic slowdown across the country.
Hours before enacting the latest tariffs, Trump reversed a threat to double the rate on steel and aluminum to 50% from Canada, the US’s top source of imports for the metals.
The European Union swiftly retaliated by announcing just hours later that it would impose duties on €26 billion worth of American goods in response to the “unjustified” tariffs.
The countermeasures were “swift and proportionate,” it said in a statement.
Britain has resisted imposing immediate retaliatory action against the move, but Business Secretary Jonathan Reynolds said: “It’s disappointing the US has today imposed global tariffs on steel and aluminium.
“We are focused on a pragmatic approach and are rapidly negotiating a wider economic agreement with the US to eliminate additional tariffs and to benefit UK businesses and our economy."
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Before Wednesday, Trump had only enacted tariffs that applied to China, Mexico and Canada this term.
Steel tariffs of 25% launched in Trump’s first administration and continued by former President Joe Biden resulted in American importers shifting to other sources.
However, the Biden administration had allowed for exceptions on the duties from US allies, including Canada, Mexico, Japan and South Korea.
Trump’s latest action reverses that with no exceptions on any countries’ steel imports to the US. The same applies for aluminum, with rates climbing to 25% from 10%.
China is the only country whose aluminum and steel will be tariffed at rates higher than 25%.
That’s because a 20% across-the-board tariff on Chinese imports was already in effect prior to Wednesday, and the 25% steel and aluminum tariff will be tacked on top of that, bringing the total tariff rate to 45% on steel and aluminum from there.
America imports very little steel directly from China, by far the world’s largest producer of steel.
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