Mexico, Canada, EU Slam Trump’s New Steel and Aluminum Tariffs
U.S. President Donald Trump’s decision to raise tariffs on all steel and aluminum imports has sparked strong criticism from Mexico, Canada, and the European Union (EU). According to Reuters, the new tariffs, set to take effect on March 12, will increase the tax on aluminum to 25% and remove exemptions for certain countries and products. This move has raised fears of a global trade war and left businesses scrambling to adjust.
Trump announced the tariffs late Monday, saying they would apply to all countries without exceptions. “It’s 25% for everyone, no matter where the metal comes from,” he said. The decision affects major suppliers like Canada, Brazil, Mexico, and South Korea, which previously enjoyed duty-free access to the U.S. market.
Mexico’s Economy Minister Marcelo Ebrard called the move “unfair” and “not justified,” while Canadian Prime Minister Justin Trudeau labeled it “unacceptable.” The EU also condemned the decision, with European Commission President Ursula von der Leyen warning of “firm and proportionate countermeasures.” Reuters reports that the EU is considering reinstating tariffs on U.S. products like bourbon and motorcycles, which were previously suspended.
Businesses in the U.S. are worried about the impact of the tariffs. Companies that rely on steel and aluminum, such as Ford and Coca-Cola, say the move will increase costs and create chaos in supply chains. The Coalition of American Metal Manufacturers and Users (CAMMU) warned that small and medium-sized businesses would be hit hardest, as they depend on affordable materials to stay competitive.
Trump also hinted at more tariffs on cars, semiconductors, and pharmaceuticals, saying he would announce reciprocal taxes on countries that impose duties on U.S. goods. When asked about potential retaliation, Trump simply said, “I don’t mind.”
The new tariffs come with a rule requiring steel and aluminum to be “melted and poured” or “smelted and cast” in North America. This aims to stop China and Russia from sending minimally processed metals through other countries to avoid U.S. tariffs. While China exports little steel directly to the U.S., its massive production capacity has flooded global markets, pushing other countries to export more to the U.S.
Reuters notes that steel imports make up about 23% of U.S. steel consumption, with Canada, Brazil, and Mexico being the top suppliers. Canada alone provides nearly 80% of U.S. aluminum imports.
The tariffs have created tension among U.S. allies and uncertainty for businesses, raising concerns about the future of global trade.
This report is based on information from Reuters, a trusted news source.
https://www.reuters.com/markets/eu-readies-response-trump-hikes-steel-aluminium-tariffs-2025-02-11