Trump announces tariffs in escalating trade conflict

Monday 10 February 2025 - 10:47

U.S. President Donald Trump has unveiled plans to impose a 25% tariff on all steel and aluminum imports, alongside retaliatory tariffs aimed at countries that impose tariffs on American goods.

Trump confirmed on Sunday that he would formally announce the steel and aluminum tariffs the next day, with the retaliatory tariffs to follow later in the week. He did not specify which countries would be targeted by these counter-tariffs, stating they would not apply to all nations.

His stance was straightforward: "If they charge us, we charge them," Trump said. He highlighted the disparity in tariff rates, emphasizing that if some countries charge the U.S. up to 130% and the U.S. imposes no tariffs in return, this imbalance cannot continue.

Canada is the primary source of steel and aluminum for the U.S., followed by Brazil, Mexico, South Korea, and Vietnam. Canada also leads in aluminum exports to the U.S., with China, Mexico, and the United Arab Emirates being other significant suppliers.

Canadian officials stress that their steel and aluminum support key U.S. industries, including defense, shipbuilding, and automotive sectors, contributing to both competitiveness and security in North America.

Trump's latest tariff announcement follows a previous plan to implement a 25% tariff on all goods from Canada and Mexico and a 10% tariff on Chinese imports. The U.S. president agreed to postpone the tariffs on Canada and Mexico after those countries committed to combating illegal drugs and undocumented migrants crossing the U.S. border.

Meanwhile, Trump's tariffs on China, which responded with its own retaliatory tariffs on U.S. exports, took effect this past Tuesday. The U.S. president also hinted that the European Union could face tariffs soon, criticizing the bloc for its low imports from the U.S. compared to American imports from Europe.

Despite Trump's rhetoric, stock markets in Asia reacted differently, with Japan's Nikkei 225 dipping slightly, while Hong Kong's Hang Seng and China's SSE Composite saw gains.