The United States' recent decision to impose tariffs on steel and aluminum imports has sparked strong condemnation from Mexico, Canada, and the European Union. This move has heightened fears of an impending trade war as business and political leaders prepare for further tariff announcements from the new administration.
U.S. businesses, particularly those in the manufacturing sector, have expressed concerns about the impact of the tariff hike. Many companies reliant on these metals are finding it challenging to plan their next steps or anticipate whether President Trump will implement additional measures. The tariff increase is expected to disrupt supply chains across various industries.
President Trump signed proclamations raising the U.S. aluminum tariff to 25 percent from the previous 10 percent rate, effective March 12. These new tariffs eliminate country-specific exceptions and quota deals, affecting imports from Canada, Brazil, Mexico, South Korea, and other nations that previously benefited from tariff exclusions.
Mexico's Economy Minister Marcelo Ebrard condemned the tariff decision as \"not justified\" and \"unfair.\" Canadian Prime Minister Justin Trudeau also criticized the move as \"unacceptable\" and pledged a clear and firm response if necessary. European Commission President Ursula von der Leyen announced that the 27-nation bloc would implement \"firm and proportionate countermeasures\" in response.
Trump emphasized that the tariffs would apply uniformly to all countries without exceptions. He also hinted at potential reciprocal tariffs on countries that impose duties on U.S. goods, including sectors such as cars, semiconductors, and pharmaceuticals.
The tariffs are expected to have a significant impact on the aluminum industry, which is crucial for transportation, construction, and packaging. Analysts predict a substantial increase in aluminum premiums, making it difficult for domestic production to replace imported materials.
European leaders have reiterated their readiness to counter the tariffs, warning that such measures would lead to increased prices and inflation, ultimately creating a \"lose-lose scenario.\"
American businesses across various sectors, including Coca-Cola and Ford, are scrambling to mitigate the costs and disruptions caused by the new tariffs. The Coalition of American Metal Manufacturers and Users (CAMMU) has highlighted the detrimental effects on small and medium-sized businesses, which may face higher input costs and shifting supply chains away from U.S. producers.
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U.S. tariffs on steel, aluminum spark strong backlash across the world
cgtn.com
