US duties on steel and aluminium draw swift retaliation from major trading partners.
Tariffs on all steel and aluminium imports into the United States have come into effect, intensifying the global trade war sparked by President Donald Trump.
Trump’s tariffs on metals imports took effect on Wednesday, levying a 25 percent duty “with no exceptions or exemptions”. Trading partners were quick to express objections, with some swiftly announcing retaliation.
The tariffs came into play as exemptions, duty-free quotas and product exclusions expired. In addition, the duty on aluminium was raised from 10 percent.
Separate tariffs have been levied on Canada, Mexico and China, with plans to tax imports from the European Union, Brazil and South Korea also by charging “reciprocal” rates starting on April 2.
Trump has claimed that the taxes will help the US metals sector and create jobs. However, his seesawing tariff threats are jolting markets, raising fears of an economic slowdown, and threatening to raise prices for consumers.
The European Commission responded almost immediately as the tariffs came into play, announcing counter duties on 26 billion euros ($28bn) worth of US goods starting next month.
“This matches the economic scope of the US tariffs,” Ursula von der Leyen, president of the European Commission, said in a statement, adding that the regime would be imposed in two steps and be fully implemented by April 13.
The head of the EU executive also reiterated the bloc’s belief that Trump’s push to overturn global trade norms is damaging to Western unity in the face of rising challenges.
“We will always remain open to negotiation,” she said. “We firmly believe that in a world fraught with geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs.”
Canada, the biggest foreign supplier of steel and aluminium to the US, said it is considering reciprocal actions.
British Business and Trade Secretary Jonathan Reynolds said “all options were on the table” to respond in the national interest.
In Australia, Prime Minister Anthony Albanese denounced the move as “entirely unjustified … and against the spirit of our two nations’ enduring friendship” but ruled out tit-for-tat duties.
Meanwhile, two leading South Korean steelmakers announced they were considering investing in new facilities in the US, supporting Trump’s claim that his tariffs are encouraging foreign investment in the country.