President Trump’s sweeping tariffs on foreign steel and aluminum went into effect on Wednesday, inviting immediate retaliation from the European Union and escalating tensions with other trading partners reeling from his on-and-off approach to steep trade penalties.
Mr. Trump’s tariffs of 25 percent hit metal imports from every country that sells steel and aluminum to the United States. Many domestic steel and aluminum makers support the move, saying it will help protect their industry against foreign competitors. But the tariffs are expected to raise costs for American businesses that use foreign metals, including manufacturers of cars, canned food and drinks, solar panels and other products.
Some trading partners have vowed to retaliate by issuing levies aimed at hurting U.S. exporters. Canada, a major supplier of metal in the United States, said that it would impose new retaliatory tariffs on $20 billion worth of American imports, including metals, computers and sporting goods. And the European Union swiftly announced tariffs on up to $28 billion worth of American goods, including bourbon, boats and motorcycles.
Those conflicts could spiral into even bigger trade wars. Asked on Wednesday if he would retaliate against the E.U. tariffs, Mr. Trump said, “Of course I will respond.”
Many other governments — like Japan, Australia, Mexico, Brazil and Britain — chose not to react, at least for now, for fear of worsening relations and the impact on their own economies. Those countries are also girding for the next round of Mr. Trump’s tariffs on April 2, when the president has said he will impose tariffs on foreign cars and countries that he says discriminate against the United States.
Mr. Trump’s recent trade moves have rocked stock markets and exacerbated concerns about the economy. Stock markets shifted between gains and losses on Wednesday as investors weighed concerns about tariffs against better-than-expected inflation data for February. Analysts have warned that Mr. Trump’s sweeping plan for tariffs could push inflation higher in the future and slow the economy.
Annual steel imports by the top 12 places of origin
Source: Census Bureau, via the International Trade Administration
By Karl Russell
Annual aluminum imports by the top 12 places of origin
Source: Census Bureau, via the International Trade Administration
By Karl Russell
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