President Donald Trump has issued a 25% import tax on all steel and aluminium entering the US, expanding existing trade barriers. Despite warnings of retaliation from Canada and other countries, Trump’s tariffs are set to increase costs for importing these metals into the US. US businesses reliant on these imports have expressed concerns, but Trump believes the tariffs will boost domestic production. The new rules are scheduled to take effect on 12 March, with no exceptions granted. Trump stated that this move is aimed at reviving American industries and reducing reliance on foreign production. Additional tariffs may be imposed on pharmaceuticals and computer chips in the future. The US, being the world’s largest steel importer, receives most of its steel from Canada, Brazil, and Mexico. Canada, the biggest supplier of aluminium to the US, is expected to be significantly impacted by the tariffs. In response, Canadian officials have criticized the tariffs, calling them unjustified and disruptive to the strong partnership between the two countries. The market reacted with steelmakers’ share prices rising, while steel and aluminium prices increased, and the Canadian dollar and Mexican peso fell. There are uncertainties about Trump’s intentions, given his history of delaying tariffs and negotiating exemptions. Trump’s economic vision involves using tariffs to boost the US economy, protect jobs, and increase tax revenue, despite concerns about potential negative impacts on US manufacturers. Industry groups have warned about the repercussions of the tariffs, while experts question the effectiveness of such measures in creating jobs. Trump’s officials argue that the tariffs are necessary to prevent countries like China and Russia from evading tariffs by routing products through other nations. The new standards require steel and aluminium to be produced in North America, aiming to address issues like steel imports from Mexico exceeding agreed levels. The trade deficit with Canada remains a key concern for Trump’s administration. “Existen aún desequilibrios en la relación comercial entre Canadá y Estados Unidos que deberían ser abordados”, dijo.
Agregó: “No creo que estén planeando tomar un enfoque de martillo que sirva para todos en esto, pero creo que al principio, al menos en este momento, creo que lo que el presidente está diciendo … [es] que ambos países [Canadá y México] están abusando de su relación con los EE. UU. y vamos a hacer algo al respecto.”
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