US Imposes 25% Tariffs on Steel and Aluminum Imports: Global Trade War Looms
Washington: US President Donald Trump signed executive orders to impose 25% tariffs on steel and aluminum imports from March 12, ramping up a long-promised trade war despite warnings from Europe and China.
EU Vows Retaliation
The European Union swiftly vowed to retaliate with "firm and proportionate countermeasures." In an executive order released Monday, Trump said: "As of March 12, 2025, all imports of aluminum articles and derivative aluminum articles from Argentina, Australia, Canada, Mexico, EU countries, and the UK shall be subject to the additional ad valorem tariff." He issued a separate order for steel, which said it would apply to all imports from the same countries the aluminum tariffs hit, as well as to Brazil, Japan, and South Korea.
Tariffs to Indirectly Target China
The tariffs also appear to indirectly target China, with the executive orders detailing how certain countries — particularly Mexico — were "using" their exemptions to get Chinese imports into the United States. "Chinese producers are using Mexico’s general exclusion from the tariff to funnel Chinese aluminum to the United States through Mexico," it said. Mexico’s increased volume of steel imports from China also "support a conclusion that there is transshipment or further processing of steel mill articles… from countries seeking to evade quantitative restrictions."
Global Reactions
Canada, Mexico, and Brazil are among the biggest steel importers to the United States, followed by South Korea. South Korea’s acting President Choi Sang-mok vowed Tuesday to protect domestic firms’ interests and reduce uncertainties "by building a close relationship with the Trump administration and expanding diplomatic options."
Trump’s Plans
Trump had also signaled he would look at imposing additional tariffs on automobiles, pharmaceuticals, and computer chips, and promised an announcement on Tuesday or Wednesday on broader "reciprocal tariffs" to match the levies other governments charge on US products. During his 2017-2021 presidency, he had imposed sweeping tariffs as he believed US industries faced unfair competition from Asian and European countries.
Critics Warn of Disruption and Economic Pain
Canadian steelmakers warned of "massive" disruption, while the European Commission said it would "react to protect the interests of European businesses, workers, and consumers from unjustified measures." EU chief Ursula von der Leyen on Tuesday slammed Trump’s decision, vowing the bloc would retaliate. "Unjustified tariffs on the EU will not go unanswered — they will trigger firm and proportionate countermeasures," she said in a statement.
Conclusion
The US tariffs on steel and aluminum imports have sparked a global trade war, with the EU and other countries vowing to retaliate. The impact of the tariffs is expected to be felt globally, with many countries warning of economic disruption and pain. As the trade war escalates, the world is bracing for the consequences of this protectionist move.
FAQs
- What are the new tariffs on steel and aluminum imports?
The US has imposed 25% tariffs on steel and aluminum imports from March 12. - Which countries are affected by the tariffs?
The tariffs apply to imports from Argentina, Australia, Canada, Mexico, EU countries, the UK, Brazil, Japan, and South Korea. - How will the EU and other countries respond to the tariffs?
The EU has vowed to retaliate with "firm and proportionate countermeasures," while other countries have warned of economic disruption and pain. - What are the potential consequences of the tariffs?
The tariffs are expected to lead to increased costs for consumers, disruption to global supply chains, and economic pain. - Will the tariffs affect US consumers?
Trump has insisted that the impact of the tariffs will be borne by foreign exporters, but most experts believe the costs will be passed on to US consumers.