Leaders in Europe and Canada have said they will not let Donald Trump’s plans to hit their steel and aluminium exports with tariffs go unchallenged.
European Commission President Ursula von der Leyen said the move would trigger “firm and proportionate countermeasures” while Prime Minister Justin Trudeau also pledged to “stand up for” Canadian workers and businesses.
The comments came after the US president ordered a 25% import tax on all steel and aluminium entering the US, ending previous exemptions for allies including Canada and the EU and marking a major expansion of trade barriers.
Trump said he was “simplifying” the rules and the measures would boost domestic production. “This is a big deal, the beginning of making America rich again,” Trump said, signing the proclamation, which said the measures would come into force on 12 March. “Our nation requires steel and aluminium to be made in America, not in foreign lands,” he added. The US is the world’s largest importer of steel, counting Canada, Brazil and Mexico as its top three suppliers.
Canada alone accounted for more than 50% of aluminium imported into the US last year. The tariffs will raise the cost of bringing the metals into the US, sparking concern among businesses in the US that rely on the imports and many world leaders because it will make it more expensive for companies to sell their products in the world’s largest economy.
If the tariffs come into force as outlined, they are expected to have the most significant impact on Canada.
Trudeau called the threatened tariffs “unacceptable” and he hoped talks with the Trump administration would resolve the issue without the need for dollar-for-dollar retaliation.
Trump officials said the latest moves were aimed at stopping countries such as China and Russia from avoiding tariffs by routing low-cost products through other countries. The US president said he was introducing new standards that require steel to be “melted and poured” and aluminium to be “smelted and cast” in North AmericaNick Iacovella, a spokesman for Coalition for a Prosperous America, which represents steel-makers and supports the tariffs, said his group is most concerned about a surge of steel imports from Mexico, above levels agreed in 2019.
But he noted that Canada sends far more goods to the US than it imports – a trade deficit that has been a key issue for Trump.
“There are still imbalances with the Canadian and United States trading relationship that should be addressed,” he said.
He added: “I don’t think they’re planning to take a one-size-fits-all hammer approach to this, but I think early on, in the beginning at least right now, I do think what the president is saying … [is] both of those countries [Canada and Mexico] are abusing their relationship with the US and we’re going to do something about it.
Source: BBC