A Hike in Steel and Aluminum Tariffs: Europe's Reaction to Trump's Move
Immediate Implementation of Trump's 50%Import Taxes on Steel and Aluminum.
In the wee hours of the morning, Donald Trump's announced doubling of import tariffs on steel and aluminum kicked off. Now, a 50% rate is in effect against these imports, upping the ante from the previous 25%. This action by the President is aimed at correcting trade imbalances and propping up the domestic industry.
Steel and aluminum imports from the UK are not subject to the increased tariffs, set to remain under a 25% rate. The White House justified this by referring to a trade pact between the US and the UK.
Trump's order, signed on Tuesday, could lead to higher prices for imports and make it more challenging. Economists predict these changes would have a noticeable impact on consumers, such as when purchasing cars, kitchen appliances, or canned goods.
In 2021, the US was the world's largest importer of steel after the European Union. The primary countries exporting steel to the US are Canada, Brazil, and Mexico, according to the US government. Germany is also among the top ten exporters to the US. The European steel industry considers the US a significant market, with the US being the most important destination for German steel exports. Aluminum imports mainly hail from Canada, the United Arab Emirates, China, and South Korea.
The increased tariffs are just one more instance in a long line of tariffs imposed or threatened by Trump to sway trade agreements. Some of these have been contested in court, but the new tariffs on steel and aluminum are exempt from such challenges.
The European Union's response to this latest move remains to be seen. Over the weekend, the EU Commission criticized the announcement severally and hinted at a counter-response by summer. The move is viewed as a provocation, especially after the intensification of negotiations to resolve the ongoing trade dispute.
However, negotiations reportedly continue, and another meeting between EU Trade Commissioner Maros Sevcovic and US Trade Representative Jamiey Greer is set for this Wednesday in Paris.
Should Trump hold firm on the doubled tariffs, the EU could retaliate quickly by imposing countermeasures. The member states had already paved the way for this action in April. US products that may be affected include jeans, motorcycles, beef, and citrus fruits. Measures on industrial and agricultural goods like cars, sweet potatoes, and whiskey are also on the table.
- Trade
- Tariffs
- USA
- Donald Trump
- EU
- Economy
- Steel Industry
Insights:The EU views the increased tariffs as adding uncertainty to the global economy, increasing costs for consumers and businesses, and undermining ongoing efforts to reach a negotiated solution in transatlantic trade talks. Additionally, the EU is ready to impose countermeasures if necessary to protect its economic interests and maintain a level playing field in international trade. The UK has been given a deadline to finalize certain aspects of a trade agreement with the US by early July, which could factor into the EU's response.
- The European Union (EU) is prepareing a counter-response to the doubled tariffs on steel and aluminum imposed by Donald Trump, as the increased costs for consumers and businesses may add uncertainty to the global economy.
- The EU considers the trade dispute ongoing and views Trump's move as a provocation, especially after the intensification of negotiations to resolve the issue.
- The EU is ready to impose countermeasures on industrial and agricultural goods like cars, sweet potatoes, whiskey, and even jeans, motorcycles, beef, and citrus fruits if necessary to protect its economic interests and maintain a level playing field in international trade.
