(qlmbusinessnews.com . Wed 12th Feb, 2025) London, UK —
Trump Reintroduces Steel and Aluminium Tariffs Amid Trade Policy Escalation
US President Donald Trump has announced plans to reintroduce a 25% tariff on all steel and aluminium imports to the United States. The decision, which will impact major trading partners such as Canada and Mexico, was revealed during comments aboard Air Force One.
Trump hinted at further trade measures, indicating that reciprocal tariffs could be imposed on countries that tax US imports, though he did not specify which nations would be targeted. “If they charge us, we charge them,” he asserted.
Impact on the UK and Global Markets
The US accounts for around 10% of UK steel exports, but for certain niche suppliers, the American market is crucial. Trade association UK Steel described the potential tariffs as a “devastating blow” to the UK steel sector.
Canada and Mexico, which have historically been significant steel and aluminium partners for the US, are expected to feel the greatest impact. Doug Ford, Premier of Ontario, accused Trump of “shifting goalposts and creating chaos.”
Catherine Loubier, a Canadian political adviser, stressed the interconnected nature of the two economies, highlighting that “hundreds of thousands of jobs in the US are linked to Canadian steel and aluminium supplies.”
In response to Trump's announcement, shares in major South Korean steel and car manufacturers fell sharply. The EU, meanwhile, warned it had not received formal notification of the tariffs but vowed to protect the interests of its businesses and workers.
Trade Tensions Escalate with China
The tariff announcement comes amid an ongoing trade dispute between the US and China. Earlier this month, China imposed its own restrictions on US coal, oil, and rare metals, in retaliation for US tariffs on Chinese goods.
Chinese spokesperson Guo Jiakun criticised Trump's approach, stating: “There are no winners in a trade war. What is harmed are the interests of the people of both countries.”
Economic and Political Repercussions
Tariffs have long been a cornerstone of Trump's economic strategy, which he views as a way to protect American jobs and generate tax revenue. However, previous tariffs during his first term led to increased production costs for US carmakers and fizzy drinks manufacturers, which were ultimately passed on to consumers.
Trump's latest comments have raised concerns across global markets. The price of gold, often a safe haven for investors, rose to a record $2,903.08 per ounce following his remarks.
In a symbolic gesture during his trip to New Orleans, Trump signed a proclamation renaming the Gulf of Mexico as the “Gulf of America.” Mexico dismissed the move, citing UN rules that prohibit unilateral territorial claims.
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