The 25 percent special rates imposed by US President Trump on steel and aluminum imports are now being officially in force. It is explosive that the earlier exceptions for the EU and other countries were also lifted by a February Order of Trump. The EU has already threatened countermeasures – a new trade conflict is on the rise.
Trump justifies the measure with the argument that excessive steel and aluminum imports would jeopardize the national security of the United States. He also accuses China of flooding the international market with cheap metals. Current figures show that about a quarter of the steel processed in the US is imported. With aluminum, the import share is even more than 40 percent – with recycled secondary aluminum.
According to the American Iron and Steel Institute, most steel imports come from Canada, Brazil and Mexico to the US. Germany and China are also among the top 10 of the delivery countries. The majority of the aluminum is also covered from Canada.
Dispute with Canada escalated
Canada is particularly difficult, which Trump recently attacked violently verbally. Shortly before the new rates are put into operation, he announced extra taxes on the import of Canadian steel and aluminum. He doubled the previous rate of 25 percent to 50 percent-in response on an increase in electricity prices by 25 percent for American customers through the Canadian province of Ontario. After negotiations with the American Handelsmin State Lutnick, Ontario exposed the increase in electricity, after which the White House explained that the original 25 percent inch for Canada was again.
Trump had already imposed general rates of 25 percent last week on import from Canada and Mexico. In the short term, however, he granted a postponement of one months for certain goods that fall under the North -American free trade agreement USMCA. Steel and aluminum can theoretically also fall under this agreement under certain conditions, but it remains unclear how this is practically implemented. According to the American media, there is great uncertainty among the companies involved.
The European Union is also the target
The EU must also expect significant effects of the new rates. According to current statistics, around 10 percent of the steel and 15 percent of aluminum imports in the United States from European countries come. The Stahl business association emphasized that the United States were a central sales market for the European steel industry. Already in February the EU had countermeasures in the game in response to Trump’s announcements
The situation is strongly reminiscent of trade disputes during Trump’s first term. At that time, the EU had responded to American rates with retaliation measures on American products such as jeans, Bourbon whiskey, motorcycles and peanut butter. A standstill agreement was concluded under the government of Joe Biden, who have made the punitive rates harmless – this is now on the outskirts.
More rates against EU in April
The punitive rates that have now come into force are just the beginning. On April 2, Trump wants to present his ground mutual customs plan. Customs must be increased in all areas where the United States currently requires less than its trading partners.
Trump justifies the strategy with the fact that he wanted to compensate for the weight of the retail trade. In particular, it accuses the EU to emphasize the United States economically. According to the White House, further commercial barriers can be targeted, including European VAT, State subsidies and regulations, American companies make the market access in the EU.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
