The global trade landscape has shifted once again, as the United States enforces new tariffs on steel and aluminium imports.
With a 25% duty on steel and an increased levy on aluminium now in effect, key trading partners are responding with swift retaliation.
Meanwhile, officials imposed additional tariffs on Canada, Mexico, and China, while the EU, Brazil, and South Korea prepared for “reciprocal” rates starting on April 2.
Trump Defends Move
Donald Trump defended the move, asserting that it would revitalise US industry and create jobs.
However, markets wavered, and analysts warned of rising consumer costs.
In response, global leaders acted swiftly.
In Europe, the European Commission introduced counter-tariffs on $28 billion (€26 billion) worth of US goods, targeting bourbon, boats, and motorbikes.
“This matches the economic scope of the US tariffs,” said EU Commission President Ursula von der Leyen.
Furthermore, she cautioned that burdening economies with tariffs would harm global stability.
‘Entirely Unjustified’
Elsewhere, other nations took their own measures.
Canada, the largest steel supplier to the US, announced that it was considering reciprocal action.
Similarly, British Business Secretary Jonathan Reynolds, stated that he and his team were keeping “all options on the table”.
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On the other hand, Australian Prime Minister, Anthony Albanese, strongly condemned the move as “entirely unjustified” but ultimately decided against retaliation.
Unexpected Investment Shift
Meanwhile, two leading South Korean steelmakers began exploring investments in US facilities—an unexpected validation of Trump’s claim that his tariffs would attract foreign investment.
For the EU, this marked the first time the US had imposed tariffs during Trump’s second term.
However, global leaders quickly made their stance clear: they would respond swiftly and decisively.
The trade war had begun again.