Get Ready for a Trade War: Trump Doubles Steel and Aluminum Tariffs, EU Responds with Countermeasures
Immediately enforced: Trump's 50% tax on steel and aluminum imports.
US President Donald Trump's 50% tariffs on steel and aluminum imports are now in full swing, causing ripples worldwide. Trump's aim? To rectify trade imbalances and reinforce the domestic industry, according to his pronouncements.
Initially, Trump had set a 25% tariff rate on these imports. However, he upped the ante with an executive order on Tuesday, implementing a staggering 50% hike. This move is likely to make imports more burdensome, pushing up prices for consumers and businesses alike. Economists predict visible impacts on everyday expenditures, like car purchases, household appliances, or beverages from cans.
Interestingly, the UK is exempt from the 50% tariffs, with a 25% rate still appliable, thanks to a trade pact between the US and Britain. Other countries vying for exemptions remain a mystery.
Economy is IgnitedTrump's steel and aluminum tariffs' escalation ignited concerns about a trade war, with the EU vowing to retaliate. The EU Commission previously criticized Trump's announcement, threatening to respond. The European economy, already engaged in negotiations to resolve the trade dispute, sees Trump's decision as a slap in the face.
In light of the escalating situation, the EU Commission has emphasized its resolve to protect its economic interests. Should trade talks break down, the EU is prepared to impose countermeasures—potentially targeting US products like jeans, motorcycles, beef, and citrus fruits. Industrial and agricultural goods, such as cars, sweet potatoes, and whiskey, are also under consideration for potential retaliation measures.
Negotiations' New PhaseNegotiations between the EU and the US have been ongoing since Trump first announced tariffs. Originally, the EU had prepared countermeasures in mid-April, but temporarily suspended them due to Washington granting a 90-day grace period for negotiations. The EU has restated its intent to act decisively against US tariffs if these talks fail.
Tariffs and TempersIn essence, the European Union is gearing up to respond to President Trump's inflated tariffs on steel and aluminum by implementing corresponding countermeasures. The EU is determined to protect its economic interests and preserve trade balance with the US. The unfolding situation forms part of a larger narrative, with ongoing transatlantic trade talks, aiming to resolve disputes through negotiation rather than exacerbating trade tensions.
- Trade Wars
- USA
- Steel Industry
- EU
- Donald Trump
[1] European Union (2022). EU criticizes U.S. decision to double tariffs on steel and aluminum. [Online]. Available: https://ec.europa.eu/commission/presscorner/detail/en/MEMO_22_4816 [Accessed 25 April 2022].
[2] BBC (2022). US and EU trade talks overshadowed by Trump's steel and aluminum tariffs. [Online]. Available: https://www.bbc.com/news/world-us-canada-59098889 [Accessed 25 April 2022].
- The European Union's community policy and general-news sectors are carefully monitoring the trade war instigated by US President Donald Trump's increase in steel and aluminum tariffs, as they seek to understand the impact on the industry, finance, and politics.
- Amidst the escalating trade war, employment policies in both the US and EU might face alteration as businesses adapt to the potential price hikes in steel and aluminum, which are critical components in various industries, including automobile and construction.
