President Donald Trump has revealed plans to impose a 25% tariff on all steel and aluminium entering the United States. This decision is expected to significantly impact Canada, the largest supplier of aluminium to the US. Trump also hinted at reciprocal tariffs on countries that tax US imports, although he did not specify which countries would be affected or if exemptions would be considered. This marks a further escalation in his administration’s trade policy, with previous tensions, especially with China, continuing to unfold.
The United States’ trade partners, particularly Canada and Mexico, are likely to feel the brunt of these new tariffs. Canada, being a major steel and aluminium supplier, expressed concerns over the potential harm to its economy. Ontario Premier Doug Ford criticized Trump’s shifting trade policies, warning that they risk destabilizing the economies of both countries. Canadian political figures believe that despite the strain, the interconnected nature of the US-Canada economy could lead to a resolution, though they acknowledge the high stakes involved.
The announcement caused ripple effects in global markets, with shares of South Korean steel and car manufacturers taking a hit. South Korea is a significant exporter of steel to the US, and the new tariffs could disrupt this trade. Similarly, Australian Prime Minister Anthony Albanese indicated plans to seek an exemption for Australia, which was granted during Trump’s first term. Trump’s tariffs are a core part of his economic policy, which he argues helps protect US jobs, stimulate economic growth, and raise tax revenue.
Trump’s tariff policies have already prompted retaliation from China. Earlier in the week, China imposed tariffs on a range of US goods, including coal, oil, gas, and agricultural machinery. The Chinese government framed this as a response to the US’s economic policies, particularly targeting rare metals necessary for technology and military production. Chinese officials have criticized the US approach, urging a halt to the politicization of trade, but analysts predict that US demand for affordable Chinese goods may cushion the impact of these tariffs.
In addition to the tariff announcement, Trump made headlines with remarks on international relations. During a trip to New Orleans, he signed a proclamation renaming the Gulf of Mexico to the “Gulf of America,” drawing criticism from Mexico for violating international territorial rules. Furthermore, Trump made controversial comments about Canada potentially becoming the “51st state” and his interest in acquiring Gaza, further adding to the ongoing global tension.
Source: BBC NEWS