Tariffs imposed by the United States for Imported Steel and Aluminum entered into force this Wednesday at a time of growing uncertainty in the markets due to the changes of course of the Donald Trump government in its commercial policy, especially engaged in commercial disputes with Canada, also caused the reprisal measures of the EU and the anger of China, which promises to do what is “necessary” to defend their interests.
25% tariffs on steel and aluminum imported to the US began as soon as they spend midnight without exceptions and will mainly affect Brazil, Mexico, South Korea and Vietnam, in steel; Already United Arab Emirates, Russia and China, in aluminum.
The most affected will be Canada, an important origin of both imports from both metals, and with whom Tuesday Trump maintained a pulse due to the rise in energy prices by the province of Ontario.
On the other hand, the EU responds early on Wednesday with the renewal of tariffs to American products that it had adopted in 2018 and 2020 and that had subsequently left without effect.
In addition, he completed those measures with a new package of tariffs against American products, which includes the Bourbon, Harley Davidson and Yates motorcycles.
“We firmly believe that in a world full of geopolitical and economic uncertainties, it is not of common interest to overload our economies with tariffs,” said the president of the European Commission, Ursula von der Leyen, reading a statement.
Likewise, China said that “the United States actions seriously violate the rules of the (World Trade Organization), seriously damage the multilateral commercial system based on rules and do not lead to the solution of the problem,” according to the spokeswoman of the Ministry of Foreign Affairs of Beijing, Mao NO.
Given this, he said that China – world manufacturer of steel – “will take all necessary measures to safeguard their legitimate rights and interests.”
Instead, the United Kingdom said it was “disappointed” by US measures that entered into force at 04h01 GMT, but announced that it was not going to adopt reprisal measures immediately.
“We focus on a pragmatic approach and quickly negotiate a broader economic agreement with the United States to eliminate supplementary tariffs,” said Secretary of State for Commerce, Jonathan Reynolds.
In turn, Japan lamented not to have been excluded from the American taxes although it initially did not announce reprisals, according to government spokesman Yoshimasa Hayashi.
The country most affected by American tariffs will be Canada, which supplies half of aluminum imports and 20% of steel, according to Ey-Parthenon consultant.
In the case of aluminum, the United Arab Emirates, South Korea, Baréin and China, which each represent between 3% and 6% of American imports, will also suffer the consequences.
Brazil, India, Argentina and Mexico supply the market to a lesser extent, but “still they could suffer interruptions in the supply chain as buyers adjust their supply strategies,” the consultant warns.
In the steel sector, Brazil (17% of imports) and Mexico (10%) will be the most affected after Canada. They are followed by South Korea, Germany and Japan.
The United States imports approximately half of steel and aluminum that are used in the country for industries as diverse as automotive, aeronautics, petrochemicals and basic consumption products such as preserves.
Since the beginning of his second term, Trump has used tariffs as a negotiation tool with his commercial partners, as an incentive for companies to be installed in the country and as a source of income for federal finances.
The US president already taxed the imports of steel and aluminum during his first term (2017-2021).
But unlike then, a broader range of metal products is now covered and they apply universally, without the exceptions that once benefited Canada, Mexico or Australia, and without a system of installments, then dispensed to Brazil and Argentina for example.
And it is also cumulative, that is, it will be added to existing surcharges.
China, Canada and Mexico have suffered this tariff frenzy, with an additional 20% of customs rates for the first and up to 25% for the other two.
Trump accuses the three of not doing enough to prevent illegal fentanyl entry and, in the case of their neighbors, asks them to strive more to stop illegal migration.
After weeks of negotiations he agreed to exempt Mexico and Canada from 25% to the products contemplated in the T-MEC until April 2.
That day theoretically, what Trump calls “reciprocal” tariffs, designed to tax the products of a country when they enter the United States at the same level as the State imposes on the same US goods that matters.
This measure points to emerging countries, such as Brazil or India, which often impose higher tariffs to protect the national industry.
Tariff ads and threats have caused nervousness in stock markets.
In recent days, Wall Street has erased almost all profits achieved since Trump’s choice in November, in a context of fear of a recession in the United States.
There is also the risk of inflation, says Clarke Packard, researcher at Cato Institute.
Packard does not rule out that “tariffs are rapidly reflected in prices” and fears that this succession of ads will believe “enormous uncertainty” about the trajectory of the US economy.
With agency information.
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