Donald Trump threatened Wednesday with intensifying a global commercial war with new tariffs on European Union products, while the main business partners of the United States said they would retaliate for commercial barriers already imposed by the US president.
Just a few hours after 25% tariffs on all imports of steel and aluminum to the EU entered into force, the president said that additional sanctions would impose if the European bloc fulfills its plan to establish retaliation tariffs on some US products next month.
“What they charge us, we will charge,” Trump told journalists at the White House.
Trump’s obsession with tariffs has shaken the confidence of investors, consumers and companies, in addition to generating fears of recession. He has also deteriorated relations with Canada, a key and key socio -socio, by repeatedly threatening to annex the neighboring country.
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Canada, the largest foreign steel and aluminum supplier in the United States, announced 25% retaliation tariffs on these metals, in addition to computers, sports equipment and other products for a total value of 20,000 million dollars.
Canada had already imposed tariffs of an amount similar to American products in response to wider rates imposed by Trump.
“We will not stay with crossed arms while our iconic steel industries and aluminum are unjustly attacked,” said Canada’s Minister of Finance, Dominic Leblanc.
The Central Bank of Canada also cut the interest rates to prepare the country’s economy to a possible disruption.
Trump’s measure to reinforce protections to American steel and aluminum producers restored 25% effective tariffs over all imports of these metals, and extends the encumbrances to hundreds of derived products, from nuts and screws to excavator leaves and refreshment cans.
The US Secretary of Commerce, Howard Lutnick, said Trump would also impose commercial protection measures on copper.
A Reuters/Ipsos survey revealed that 57% of Americans believe that Trump is being too erratic in their attempt to reform the US economy, and 70% expect tariffs to enlarge usual purchases.
Less exposed European Union
The 27 countries of the European Union are less exposed, since only a “small fraction” of the affected products are exported to the United States, according to the Kiel Institute of Germany.
The countermeasures of the block, which will enter into force next month, will point to American products worth up to 28,000 million dollars, including dental thread, diamonds, bathrooms and bourbon, which represent a small part of the enormous commercial relationship between the Union and the United States. However, the liquor industry warned that the measures would be “devastating” for the sector.
Even so, the president of the European Commission, Ursula von der Leyen, declared that the block will resume conversations with US officials.
“It is not of our common interest to load our economies with such tariffs,” he said.
In the White House, Trump said “of course” would respond with more tariffs if the EU went ahead with his plan. With Irish prime minister Micheál Martin by his side, Trump criticized the block member of the block for attracting US pharmaceutical companies.
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The Chinese Ministry of Foreign Affairs declared that Beijing would defend their interests, while the chief secretary of the Japan Cabinet, Yoshimasa Hayashi, warned that the measure could have a great impact on economic relations between the US and Japan.
The nearby allies of the US, United Kingdom and Australia, criticized the generalized tariffs, but ruled out the possibility of imposing immediate retaliation measures.
Brazil, the second major steel supplier to USA, announced that it would not take reprisals immediately.
Stable markets, restless companies
Since the increase in tariffs had already been announced in advance, global markets barely registered changes on Wednesday.
However, the coming and going of tariff measures has left worried companies, and manufacturers of luxury cars and chemicals have painted a gloomy panorama for consumers and industry. According to LSE data, more than 900 of the 1,500 largest companies in the US have mentioned tariffs at results conferences or in events with investors this year.
“We are in a commercial war and when a commercial war begins, it tends to sustain and feed itself,” said the CEO of Airbus, Guillaume Faury, on French television.
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The actions of the German sports manufacturer Puma lost almost a quarter of their value after a profit report that underlined the concern that commercial disputes are affecting the expense in the US.
US producers celebrate tariffs
American steel producers celebrated the measure on Wednesday, noting that tariffs imposed by Trump in 2018 had weakened due to numerous exemptions. The price of aluminum and steel in the US remained close to its highest levels.
The chief economist of JP Morgan predicted a 40% probability of recession in the US this year and durable damage to the country’s reputation as a reliable destination for investment if Trump undermines confidence in US governance.
A strong drop in American actions in March has eliminated all the profits that Wall Street had accumulated after Trump’s choice.
Deteriorated relationships with Canada
The escalation of the commercial war between the US and Canada occurs just when Prime Minister Justin Trudeau prepares to deliver power to his successor, Mark Carney, who won the contest for the leadership of the ruling Liberal Party last weekend.
“I am ready to sit with President Trump at the right time, under a position of respect for Canadian sovereignty and working on a common approach,” said Carney during a visit to a steel plant in Ontario.
Other Canadian officials are scheduled to meet with US authorities in Washington this Thursday.
Even before the tariffs came into force, EU’s national anthem had already been booed in hockey matches and some stores had retired American products from their shelves. Travelers are avoiding EU, with a 20% drop in reserves compared to last year.
Canada’s Minister of Energy, Jonathan Wilkinson, told Reuters that Canada could impose non -tariff measures, such as restricting oil exports to the US or applying taxes to the export of minerals if US tariff persists.
With Reuters information
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