On Wednesday, President Donald Trump's increased tariffs on all steel and aluminum imports from the EU came into effect, continuing a campaign to change global trade norms in favor of the US and prompting swift retaliatory measures from Europe.
Trump's measures to strengthen protection for American steel and aluminum manufacturers restore existing global tariffs of 25% on all imports of these metals and extend duties to hundreds of types of products made from these metals, from nuts and bolts to bulldozer blades and soda cans.
Since the tariffs will also affect products containing steel and aluminum, such as tableware and window frames, EU representatives say they could impact about 26 billion euros (28 billion dollars) of the bloc's total exports. The European Commission stated that it will impose retaliatory tariffs on American goods worth this amount starting next month.
As reported by The New York Times, the retaliatory measures will consist of two parts. The European Union raised tariffs on a number of goods in response to US measures during President Trump's first term, but under the Biden administration, their effect was suspended. From April 1, the tariffs will be resumed and will affect goods from the US worth 6.4 billion euros.
The second step will be a new package of countermeasures, which should come into effect in mid-April and target goods worth about 18 billion euros. The list is proposed to include industrial and agricultural goods, including household appliances, poultry, and beef.
On Tuesday, the US announced an increase in duties to 50% on steel and aluminum imports from Canada, the main supplier. However, Trump abandoned these plans after Ontario Premier Doug Ford agreed to suspend his province's decision to impose a 25% duty on electricity exports to the states of Minnesota, Michigan, and New York. Meanwhile, as reported by Reuters, a White House representative called US pressure on Canada a 'victory' for the American people.
Trump's heightened focus on tariffs since taking office in January has undermined the confidence of investors, consumers, and businesses, and economists are increasingly concerned that this could lead to a recession in the US.
A small business survey conducted on Tuesday showed that sentiment has weakened for the third consecutive month, completely negating confidence after Trump's election victory on November 5, and a household survey conducted by the Federal Reserve Bank of New York on Monday showed that consumers are increasingly pessimistic about their finances, inflation, and the labor market.
Photo: Reuters