President Trump has pressed ahead with the plan, which is sure to escalate tensions with trading partners
The trade war between the US and its trading partners is about to heat up as new tariffs are applied to steel and aluminum.
President Donald Trump is pushing full steam ahead with his controversial plan to impose what he’s calling ‘catastrophic’ tariffs on key US trading partners, a move he signed into action just moments after taking office.
The tariffs target Canada, Mexico, and China, with Trump accusing them of failing to curb the flow of illicit drugs crossing US borders. He’s also using immigration issues as a key justification for the tax sanctions.
With new tariffs on steel and aluminum now in effect, tensions between the US and its trading allies are expected to escalate even further. The fallout from these bold measures is likely to fuel an already heated trade war, as America’s global relationships are pushed to the brink.
The tax hike raises the duty on metals entering the United States to a hefty 25 percent, effectively ending all previous country exemptions from the levies overnight.
Canada has expressed particular frustration, especially after President Trump threatened to double US tariffs to 50 percent on the country’s steel and metal imports. When faced with the potential of retaliatory counter-tariffs, the Trump administration was forced to back down.
Ontario Premier Doug Ford has been at the forefront of the counterattack, vowing to raise electricity prices by 25 percent—which would add $100 to the monthly bills of 1.5 million Americans—or, as a more drastic measure, cut power entirely to neighboring states like Minnesota, New York, and Michigan.
Despite this, Canada, along with Mexico and Brazil, will bear the brunt of the 25 percent tariffs on steel and aluminum, as they are some of the largest suppliers of these metals to the US.
The international response has been swift, with UK Trade Minister Jonathan Reynolds expressing his disappointment, while Australian Prime Minister Anthony Albanese called the move “entirely unjustified.”
“It’s against the spirit of our two nations’ enduring friendship and fundamentally at odds with the benefits our economic partnership has delivered for over 70 years,” UK Trade Minister Jonathan Reynolds stated.
In response, the European Union has announced it will impose retaliatory duties on 26 billion euros ($28.3 billion) worth of US goods.
However, President Trump remains confident that the tariff hikes will revitalize steel and aluminum production on US soil. The American Iron and Steel Institute (AISI), which represents US steelmakers, is backing the move, claiming it will create jobs and boost domestic manufacturing.
AISI President Kefvin Dempsey expressed his approval, saying: “AISI applauds the president’s actions to restore the integrity of the tariffs on steel and implement a robust and reinvigorated program to address unfair trade practices.”
Despite this, critics argue that the tariffs could have a domino effect on prices for US consumers, potentially harming economic growth, particularly in industries like aerospace, car manufacturing, and construction, all of which rely heavily on steel and aluminum imports.
