US President Donald Trump achieved his announcement and announced new rates of 25 percent on all steel and aluminum imports to the US. With the signing of the corresponding decisions, he solved an election campaign to prove import with rates that correspond to those who bring other countries to American exports.
From the moment the rates come into force, initially remained unclear. Various American media reported as the start date, stating government circles of 4 March.
Trump: “This is a big problem”
“Today I simplify our rates about steel and aluminum,” said Trump in the White House. “That’s a big problem.” In this way America will be rich again. In principle, there may be no exceptions or exemptions. At the same time, Trump promised a special regulation for Australia in steel rates. The US also consider special rates for vehicles, chips and pharmaceutical products. He has nothing against that, other countries have to take retaliation measures, the US president said.
EU sees no justification for rates
In his first term up to 2021, Trump also introduced additional taxes on steel and aluminum. At that time, the EU responded to selected American products, such as jeans, whiskey and motorcycles. Brussels has already announced a response to the new American special rates for steel and aluminum. However, the EU will only respond if it has received detailed or written clarifications. The EU sees no legitimate reason for the introduction of rates for its export.
The Canadian industrial minister François-Philippe Champagne described American rates as “completely unjustified” in a statement, since steel and aluminum from Canada support important American industries such as defense, shipbuilding, energy and automotive technology. In South Korea, the Ministry of Industry called on steel manufacturers to discuss how the effects of the rates could be minimized. Hong Kong even wants to submit a complaint to the World Trade Organization (WTO) because the United States completely ignored the status of the city as an independent customs area, said chief secretary Eric Chan Tuesday.
Possible exception for Australia
Trump based on the rates with an American trading surplus against the state. “And the reason for this is that you buy many aircraft. They are quite far away and need many planes, “Trump said.
Australia only plays a subordinate role in the Stahlexport markets worldwide. However, the country has a significant appearance of iron ore, an important raw material for steel production. If Trump agrees with an exception to Australia, this would be one of the first countries to which such regulations would apply.
The situation on the steel market can be more complicated
Due to the new American rates on steel, the situation on the steel market, which is strategically important for many industrial areas, makes even more complicated. This was already destabilized in Europe by overproduction in China and the stuttering blast furnaces.
The preferred steel supplier of Washington is Canada. According to the US Department of Trade, the United States introduced 5.95 million tons from the Northern neighbor in 2024. Brazil exported 4.08 million tons of steel to the US, the EU 3.89 million tonnes, followed by Mexico and South Korea with 3.19 and 2.5 million tonnes. China, on the other hand, exported only about 470,000 tons to the US.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
