Countries React To US President Trump's 25% Steel Tariff Proposal

Moneylife Digital Team 12 February 2025

Consumer Interest

US president Donald Trump's planned 25% tariffs on steel and aluminium imports would be added on top of other levies on Canadian goods, resulting in a total 50% tariff if threatened duties on all imports from Canada are enacted in March.

However, governments around the world, including Mexico, Canada and the European Union (EU), condemned president Trump's metals tariffs and braced for even more levies from the new administration.

Mexico's government stressed that the announced tariffs were unfair and unjustified, as the US runs a steel and aluminium trade surplus with that country.

Mexico's steel chamber, Canacero, warned that the US duties would harm the local industry as well as supply chains across North America. It called for retaliatory tariffs on US steel if Mexican exports are not exempted from the duties.

Brazil, for its part, said that the country would not engage in a trade war. It stated that the government had yet to discuss the US tariffs but emphasised that Brazil "will always be in favour of strengthening free trade" and would not participate in any trade war.

Japan has requested the US to exempt it from steel and aluminium tariffs, despite Trump clearly stating 'no exceptions or exemptions.' Japanese trade minister is set to make an announcement on Wednesday regarding the fresh tariff measures, which may be used as grounds for insurance payments if they apply to exports from Japan to the US.

Meanwhile, president Trump has agreed to give 'great consideration' to Australia's request for an exemption from the steel tariffs due to the country's trade deficit with the US. He noted that Australia was one of the few countries with which the US had a trade surplus.

Experts say the tariff hike, which is scheduled to take effect on 12 March 2025, would reverberate across the supply chain, affecting all businesses that rely on these materials.

Comments