The tariffs, which will be formally unveiled on Monday, will apply to all countries, including major steel and aluminum exporters to the U.S. such as Canada, Brazil, Mexico, South Korea, and Vietnam.
Trump justified the move as part of his broader strategy to impose equal trading terms with foreign partners, saying, “And very simply, if they charge us, we charge them.”
The announcement has sparked concerns among policymakers, with Canadian Innovation Minister Francois-Philippe Champagne stating the importance of Canadian metals to U.S. industries such as defence, shipbuilding, and automotive manufacturing.
The American Iron and Steel Institute (AISI) has expressed strong support for the tariffs, with its president, Kevin Dempsey, saying, “We look forward to working closely with the President to implement a robust trade agenda that addresses foreign market distortions”.
However, trade experts warn that the tariffs could lead to retaliatory measures from key partners, including the European Union, which has previously imposed countermeasures on U.S. whiskey and other goods in response to Trump’s tariffs.
Chris Swonger, CEO of the Distilled Spirits Council of the U.S., cautioned that escalating trade tensions could result in the EU reinstating a 50 percent tariff on American whiskey, potentially devastating the industry.
The move is also expected to have significant implications for global trade dynamics, with analysts predicting increased volatility in the steel and aluminum sectors, and potential repercussions for manufacturing costs and consumer prices in the U.S. and beyond.
As markets brace for the impact, Trump’s latest moves indicate a push toward protectionist policies, which could have far-reaching consequences for the global economy.
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