On Sunday, President Trump announced that a 25% tariff would be imposed on all foreign imports of steel and aluminum on Monday. Additional reciprocal tariffs against US trading partners will follow.
Trump said that tariffs would be applied to all countries, including Canada and Mexico, while on Air Force One during his trip to the Super Bowl.
“Any steel that comes into the United States will have a tariff of 25 percent,” Trump said. “Aluminum, too.”
According to data from the American Iron and Steel Institute and the government, the top three sources of US steel imports is Canada, Brazil and Mexico, followed closely by South Korea and Vietnam.
Canada condemns tariffs, calls move chaotic
Canada, which is one of the biggest suppliers of steel in the United States has expressed its strong disapproval at President Donald Trump’s decision imposing a 25% tariff on steel and aluminum imports.
Ottawa was caught off guard by the announcement. A government source told Reuters that Ottawa wouldn’t respond until it received more details or a formal directive from Washington.
Ontario Premier Doug Ford said that Trump’s “shifting goals and constant chaos” put Canada’s economic health at risk.
Ontario is the most vulnerable province in Canada for tariffs due to its heavy concentration of steel production.
Catherine Loubier is a Canadian political advisor who highlighted the deep economic ties that exist between the two countries, noting the fact that hundreds of thousand of American jobs are dependent on the importation of steel and aluminum from Canada.
“These tariffs are a loser for everyone, I’m sure,” she said.
Australia seeks exemption from the law in high-level talks
Investors reacted negatively to the news of tariffs by reducing their stock market investments.
The S&P/ASX 200 Index fell 0.3%. This was due to the decline of major mining companies such as BHP Group (-1%) or Rio Tinto (-1,2%).
Iron ore prices initially fell following Trump’s announcement. However, prices have since recovered.
Australia has been lobbying for a similar exemption to that granted during Trump’s initial term.
Anthony Albanese, the Prime Minister of Italy, confirmed that he will raise the issue with Trump in a upcoming phone call. He will emphasize the importance of fair and free trade.
Trade Minister Don Farrell, along with other officials, have been arguing Australia’s side behind the scenes. They claim that tariffs will not only hurt Australian steel producers but also American manufacturers who rely on Australian steel.
Farrell said that the Australian government has been working to protect Australian interests “from day one”, and has already engaged senior US officials.
He acknowledged, however, that securing a waiver was more difficult than usual this time around, as the administration hadn’t yet confirmed a new US Trade Representative.
UK adopts a wait-and-see attitude
The UK government was cautious, saying that it would need to hear more from Washington before it could take any action.
Home Office Minister Dame Angela Eagle said to reporters that Britain and the US had a “balanced trade relationship” and that both countries were interested in maintaining strong economic relations.
Eagle said: “We have a very well-balanced trading relationship with the US. I believe there is PS300 billion in trade between our two countries. I think that it’s best for both of us to continue with this balanced trade, as we are long-standing allies and neighbours.”
China downplays the impact but criticises US policy
China, a frequent victim of Trump’s policies on trade, was quick to accuse the US of escalating tensions.
Victor Gao is a Chinese diplomat, economist and he believes that the impact of the steel tariffs on China will be minimal because there is a strong global demand for their products.
He told the BBC that “[Chinese products] are very affordable and competitive, even with a 10 percent tariff.” The cost would ultimately fall on American consumers.
Beijing has not announced immediate countermeasures. However, previous disputes have shown China’s ability to retaliate with its own tariffs. These could target American agricultural or industrial products.
This post Trump’s Steel and Aluminium Tariffs: Here’s How Countries Reacted to News may be modified as new developments unfold.
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