Trade conflict
Trump’s steel and aluminum tariffs come into force
Trump represents tariffs as a miracle weapon to boost the economy. A few weeks ago he announced tariffs on steel and aluminum – now the deadline has come. The EU also meets it.
The tariffs announced by US President Donald Trump on all steel and aluminum imports of 25 percent have come into force. According to an arrangement of the Republican of February, which now applies, the exceptions from countries from the European Union and other countries are also exposed. The European Union has already threatened with countermeasures – a major trade conflict is making ahead. Trump argues that excessive steel and aluminum imports threatened the national security of the United States. He also accuses China of flooding the global market with cheap metal.
Canada as the main source of steel and aluminum
According to the latest data, around a quarter of the steel used by industry in the USA is imported. With aluminum, the value is more than 40 percent. With secondary aluminum, which comes from recycled material, the value is again significantly higher.
According to the American Iron and Steel Institute for 2024, the United States relates its steel, especially from Canada, Brazil and Mexico. Germany and China also rank in the top 10 of the countries of origin of steel imports. In addition, most of the aluminum that is imported into the USA comes from Canada.
Canada and the United States initially set a power dispute
Trump had recently shot verbally sharply against the neighbor in the north. He briefly followed the entry into force of the steel and aluminum tariffs and announced that he had instructed to raise the steel and aluminum imports from Canada tariffs of another 25 percent, so that the total tariff from Wednesday morning was 50 percent. This is an answer that Canada raises a price increase for electricity exports to the USA by 25 percent, says Trump. Ontario then exposed his increase in electricity after negotiations with US trade minister Howard Lutnick. The White House then announced that the original 25 percent for Canada applied for tariffs.
Trump had already imposed flat -rate tariffs of 25 percent for goods from Canada and Mexico last week. Shortly after his entry into force, however, he granted a one -month postponement for certain products. Specifically, it is about goods that fall under the North American free trade agreement USMCA. Steel and aluminum actually fall under this agreement under certain conditions. It is open how this will be in practice. According to US media, there is also great uncertainty among the companies concerned.
Also affected the European Union
The EU will also feel the effects of the new tariffs. According to the latest data, around 10 percent of all steel and 15 percent of all aluminum imports in the United States come from the EU. At the Stahl industry association, it was said that the United States was the most important sales market for the European steel industry. After Trump’s customs announcement in February, the EU threatened countermeasures.
The new tariffs awaken bad memories of a trade conflict between the EU and the USA during Trump’s first term. When Trump introduced tariffs to European steel and aluminum imports at the time, the EU reacted with retaliation tariffs to US products such as jeans, bourbon whiskey, motorcycles and peanut butter. During Joe Biden’s term, a standstill agreement was concluded that defused the tariffs.
More tariffs against EU in April
The steel and aluminum tariffs now introduced by the US government have been the first criminal measures that have come into force since the beginning of Trump’s second term that the EU is targeting. Trump’s actual customs circuit against the European partners should only follow on April 2. Then the Republican wants to introduce his so -called mutual tariffs. In principle, this means that the United States will raise customs duties wherever they are currently demanding less than its trading partners.
In the past, Trump had emphasized that they wanted to correct the retail weight with these tariffs and accused other trading partners – especially the EU – to treat the United States unfairly. The White House made it clear to target other trade barriers. This included VAT, state subsidies or regulations that prevented US companies from doing business abroad.
Trump makes politics with tariffs
An import customs is a tax that is levied on the border on goods that are introduced from abroad. As a rule, it pays the importing company. Experts consider tariffs to be a risky strategy to carry out a trade conflict because this primarily causes consumer prices and thus the normal citizens hit the most. The competitiveness of American companies that rely on foreign goods can also suffer from the tariffs due to the higher production costs.
Trump has been a taller course in his customs policy since took office. In the past few days, this has already been noticeable on Wall Street, the share prices fell.
dpa
Source: Stern
