U.S. tariffs on steel and aluminum began to rise after President Trump’s efforts to reconfigure global trade.
Many countries in the Asia-Pacific region are affected – especially China, Japan, Vietnam, South Korea and Australia. Indeed, the tariffs have been linked to some of the recent U.S. allies in the region, as well as some EU and UK, most of whom are looking for a better solution.
Donald Trump’s move to increase protections for U.S. steel and aluminum producers restores effective global tariffs on all metal imports and extends its responsibilities to hundreds of downstream products made of metal, from nuts and bolts to bulldozer blades and soda cans.
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EU is back, with US business confidence eroding
The move caused rapid revenge from Europe. And it may also have a significant domestic impact on the United States.
Since taking office in January, Trump’s high focus on tariffs has shocked investors, consumers and business confidence, with some economists worried that they will cause the U.S. recession and further lag behind the global economy.
The European Commission, the EU’s administration for coordinating trade affairs, responded quickly, saying it would impose anti-competitiveness on 26 billion euros ($28 billion) next month’s 26 billion euros ($28 billion).
Committee Chairman Ursula von der Leyen told reporters: “We are ready for a meaningful conversation.
“We firmly believe that it is not in our common interest to burden our economies with such tariffs in a world full of economic and political uncertainty on Earth.”
China’s steel sector faces large Regg
China’s foreign ministry said Beijing will take all necessary measures to safeguard its rights and interests. Beijing still hopes a summit between Xi Jinping and Trump could be in June, minimizing some of these trade strikes.
China’s steel sector is in trouble. December YouTube report says More than 70 steel mills collapsed There were 100,000 workers arranged due to weak demand and falling prices, which was due to a sluggish property and a plunge in foreign demand.
The industry will conduct large-scale regigging on China’s faults amid cleaner technology and trade tensions “Overcapacity” Western countries and other trading partners.
China’s steel manufacturers are accused of overproduction by many countries – Brazil, Canada, Indonesia and Turkey Over the past year, hiking Chinese steel tariffsAccording to the New York Times, Vietnam and South Korea have announced greater responsibilities after Trump was elected.
It said China’s architectural boom provided abundant housing for its 1.4 billion people, but left the country “empty apartments for another 300 million people,” he said. After the real estate collapse four years ago, steel manufacturers were forced to sell their outputs in global markets, sparking opposition from the global steel trade.
Allies were not impressed
Meanwhile, Japanese cabinet secretary Yoshimasa Hayashi said the move could have a significant impact on the economic ties between the United States and Japan.
Canada, the UK and other closed US allies Australia Criticizing the blanket tariffs, Canada has proposed reciprocity action, and British Trade Minister Jonathan Reynolds said “all options are on the dining table” to deal with national interests.
Australian Prime Minister Anthony Albanese, who faces elections in the coming months, said the move “blames the spirit of the lasting friendship between our two countries” but excludes the responsibilities of the tit title.
“Tariffs and escalating trade tensions are a form of economic self-harm and the secret to lower growth and inflation,” he told reporters.
The countries that are most affected by the tariffs are Canada, the largest foreign steel and aluminum suppliers in the United States, Brazil, Mexico and South Korea, all of which have some degree of exemption or quota.
The $7 billion Chinese steel sales that were processed and sold to the United States by a third country are at risk.
Mexico, Vietnam and Brazil are also importing more and more Chinese steel. Last year, U.S. steel imports from Vietnam increased by 143% year-on-year. Data from China Customs and data from the U.S. Steel Academy show that Vietnam accounts for 11.5% of China’s total steel exports.
The steel workers are happy, the Canadians are boiling
Trump initially threatened Canada to raise 50% of its steel and aluminum exports to the U.S., but suspended the move at the provincial level of Ontario, imposing a 25% surcharge on Minnesota, Michigan and New York.
The incident whipped the U.S. financial markets and was already upset by Trump’s widespread tariff offensive. While Australia’s benchmark was as high as 9.6% from February’s record, Asian markets were stable on Wednesday.
The U.S. Customs and Border Protection cut off imports eligible for tax-free entry under the quota arrangement before the midnight deadline and said in an announcement to shippers that the quota paperwork needs to be processed at 4:30 PM Tuesday at local time at the U.S. entrance, otherwise full tariffs will be charged.
The move was welcomed by U.S. steel producers as it restored Trump’s original 2018 metal tariffs, which were weakened by many countries’ exclusions and quotas and thousands of exclusions targeting products.
“By closing the tariff loopholes that have exploited for years, President Trump will once again raise a steel industry ready to rebuild the U.S.,” said Philip Bell, president of the Steel Manufacturers Association.
“The revised tariffs will ensure that U.S. steel manufacturers can continue to create new high-paying jobs and allow more investments to know that they will not be undermined by unfair trade practices,” Bell added.
Carney talks with Trump after being sworn in
The escalation of the U.S.-Canada trade war took place as Prime Minister Justin Trudeau prepares to hand over power this week to his successor Mark Carney, who won a leadership contest last weekend to rule liberals.
On Monday, Carney said he would not be able to talk to Trump until he was sworn in. Trump repeated on social media that he hopes Canada will be “fifty-one states we cherish.”
Canada’s Energy Secretary Jonathan Wilkinson told Reuters that Canada could take non-tariff measures, such as limiting oil exports to the United States or imposing export taxes on minerals if U.S. tariffs persist.
Canada has enough hydraulic resources to make primary aluminum production more cost-effective than the United States, establishing a commanding position in the U.S. aluminum market, as U.S. smelters once restored currency due to Trump’s tariffs.
China remains second in aluminum and goods made from aluminum, but already faces high tariffs to offset so-called dumping and subsidies, as well as new 20% tariffs on fentanyl trafficking over the past month.
At home, it is developing on Trump’s economic agenda. A small business survey on Tuesday showed sentiment weakened for the third straight month, with people completely eroding confidence after Trump’s Nov. 5 election victory. A New York Fed survey of households shows that consumers are becoming increasingly pessimistic about their prospects.
- Jim Pollard’s Extra Input and Editing by Reuters
