Steel and Aluminum Showdown: Europe Responds to Trump's Doubled Tariffs
Immediate enforcement of Trump's 50% tariffs on steel and aluminum begins.
Get ready for some trade tension! The 50% tariffs on steel and aluminum imports, proposed by US President Donald Trump, are now in full effect. Gone are the days of the 25% rate - now it's a whopping 50%. Trump intends to balance trade imbalances and bolster the domestic industry with this move.
While steel and aluminum imports from the UK are exempt from the new tariffs, the UK continues to face a 25% rate due to the existing trade pact between the US and the UK.
Trump put his foot down, signing the order on Tuesday, and this hike in tariffs is sure to make imports tougher and lead to spiking prices. Economists predict significant impacts for consumers, such as when purchasing cars, kitchen appliances, or canned goods.
Last year, the US was the second-largest importer of steel globally, trailing only behind the EU. Major suppliers include Canada, Brazil, Mexico, and Germany, which ranks among the top ten exporters to the US. The US imports aluminum primarily from Canada, the United Arab Emirates, China, and South Korea.
Trump has already slapped - or threatened - tariffs on numerous products in an attempt to force what he deems fairer trade agreements. Some of these measures have faced legal challenges, but the new duties on steel and aluminum escape such scrutiny.
The EU's response to this tariff increase still hangs in the balance. The EU Commission spoke out strongly against the announcement over the weekend, indicating a potential response by summer. The move is perceived as a slap in the face, given the intensified negotiations to resolve the trade dispute.
According to recent statements from the EU Commission, negotiations have continued this week and were described as "very constructive." Another meeting between EU Trade Commissioner Maros Sevcovic and US Trade Representative Jamiey Greer is scheduled for this Wednesday in Paris.
If Trump maintains the increased tariffs, the EU could impose countermeasures promptly. The member states have already paved the way for this in April. Potential countermeasures could impact US products such as jeans, motorcycles, beef, or citrus fruits, as well as industrial and agricultural goods like cars, sweet potatoes, and whiskey.
The intensifying trade war between the EU and the US has put pressure on both sides. Recent talks between the EU and the US have been ongoing since the first round of Trump's tariff announcements, but the EU has consistently stated that it will take decisive action against US tariffs if negotiations fail.
- Tariffs
- Trade War
- EU
- USA
- Donald Trump
- In response to Donald Trump's doubled tariffs, the EU Commission has stated it's prepared to retaliate, potentially imposing countermeasures on US products such as jeans, motorcycles, beef, and whiskey.
- The EU, currently embroiled in a trade war with the US, has continued negotiations this week, with both sides under pressure as the EU has vowed to take decisive action against US tariffs if talks fail.
