US President Trump wants to impose new tariffs-this time it hits the steel and aluminum industry. For imports from all countries, a volume of 25 percent should be incurred. The EU could react with counter -tariffs.
US President Donald Trump wants to occupy steel and aluminum imports to the United States with tariffs of 25 percent. They are to be announced at the beginning of this week, as the Republican explained to journalists during a flight with the Air Force One on the way to New Orleans to the Super Bowl – the US football final. They should affect all countries. Exceptions would also not apply to the neighbors Canada and Mexico.
He will also announce “mutual tariffs” (Reciprocal Taiffs). This means that the USA would raise import duties on products if another country imposes tariffs on US goods. “Quite simply: if you calculate something to us, we will charge you something,” said the US President.
When asked when a reporter asked when the “mutual tariffs” would come into force, Trump replied: “Almost immediately.” It is unclear when the tariffs for steel and aluminum grab. The President wants to announce details this week.
Canada, Brazil and Mexico particularly affected
According to the government and the American Iron and Steel Institute, the largest steel suppliers Canada, Brazil and Mexico, followed by South Korea and Vietnam. Canada is the largest supplier of primary aluminum to the USA by far and delivered 79 percent of total imports in the first eleven months of 2024. Mexico is an important supplier of aluminum scrap and aluminum alloys.
From Canadian government circles it was already said that Ottawa would not react to Trump’s announcement of steel and aluminum tariffs, as long as it does not have more information or that Trump has a written execution.
The Republican also said that the US government would allow Japanese company Nippon Steel to invest in US Steel, but that they would not allow them to receive a majority stake. “The tariffs will make the company very successful again and I think it has good management,” said Trump about US Steel. Nippon Steel refused to comment on Trump’s recent announcements.
Customs dispute was initially averted
It was only at the beginning of the week that a North American customs conflict with uncertain consequences for the global economy was initially averted. The neighboring countries Mexico and Canada had agreed to concessions in border security just a few hours before the occurrence of threatened US tariffs in the amount of 25 percent. For this, Trump pushed in the trade restrictions for at least 30 days.
With regard to the economically powerful rival China, the US President did not let himself be talked about: tariffs of ten percent of all Chinese goods came into force last Tuesday. After returning to the White House, Trump had also renewed his threat to the European Union. Trump wants to strengthen the United States as a production location and reduce the trade deficit with Europe.
EU wants to act determined
The EU had recently shown itself to be trump at a summit in Brussels. Chancellor Olaf Scholz (SPD) and France President Emmanuel Macron announced European countermeasures if the United States collected additional tariffs on EU goods. EU diplomats said that the European Commission had prepared possible countermeasures a long time ago. In the TV duel in the first, Scholz said that the EU could react within hours with appropriate measures if Trump would impose tariffs.
During Trump’s first term, the EU had confidently countered new taxes on steel and aluminum products from Europe on Bourbon Whiskey, Harley-Davidson motorcycles and jeans. How strongly the EU reacts this time should depend on Trump’s concrete decision.
Risk for the export nation Germany
New tariffs on imports from Europe would be a deep blow in particular for the German economy, which has already shrunk for two years in a row. The United States is the most important sales market for German exporters. Economists fear a trade conflict between the USA and the EU.
