Increasing tariffs on all imports of steel and aluminum, imposed by US President Donald Trump, came into effect on Wednesday. The measure intensifies the US government's strategy of reshaping global trade in favor of the United States, provoking immediate reactions from affected countries, especially in Europe.
The decision imposes a global tariff of 25% on imports of these metals and extends restrictions to hundreds of products that use them, such as nuts, bolts, excavator blades and soda cans. The Trump administration’s stated goal is to protect domestic producers in these sectors by ensuring a more favorable market for American industry.
Main affected countries and global reactions
Countries most affected by the measure include Canada, the largest foreign supplier of steel and aluminum to the United States, as well as Brazil, Mexico and South Korea, which previously enjoyed some level of exemption or trade quotas. The decision has generated criticism and concerns in several economic sectors, as it could significantly impact exports from these countries and generate trade retaliation.
The European Union reacted swiftly to the US decision, announcing it would impose tariffs on 26 billion euros worth of US goods starting next month.
Ursula von der Leyen, President of the European Commission, said the EU was ready to engage in dialogue. However, she stressed that imposing tariffs of this magnitude would harm global trade. She also warned that the measure could jeopardize economic relations between the blocs.
Meanwhile, China has also signaled that it will take all necessary measures to protect its trade interests. In Japan, Chief Cabinet Secretary Yoshimasa Hayashi warned that the move could significantly impact economic relations between the two countries.
The response of historical allies and the impact on markets
Even countries traditionally allied with the US, such as Canada, the UK and Australia, have criticized the blanket imposition of tariffs. Canada is considering retaliatory measures, while UK Trade Minister Jonathan Reynolds said all options were being considered to protect national interests. Australian Prime Minister Anthony Albanese called the decision damaging to the historic friendship between the two countries, although he ruled out a direct tariff response.
The US’s aggressive stance in trade negotiations has been shaking the confidence of investors, consumers and businesses since the beginning of the Trump administration. Economists warn that this tariff escalation could lead to a recession in the United States and undermine global growth. Trump’s recent threat to double tariffs to 50% on Canadian steel and aluminum exports, although it was withdrawn after negotiations with the province of Ontario, was an example of the direct impact of these decisions on financial markets.
In addition, the US Customs and Border Protection agency has moved up the imposition of tariffs. To do so, it has cut imports that could enter duty-free under trade quotas. The decision has generated new tensions between exporters and importers.
The deadline for the entry of tariff-free products has been drastically reduced. The measure took companies by surprise and increased uncertainty about the future of international trade. In a global scenario already marked by economic instability and political tensions, the US's escalation of protectionism adds a new factor of concern, putting trade relations between the world's largest powers to the test and generating uncertainty about the future of the affected economies.
Source: David Lawder, Philip Blenkinsop, Andrea Shalal, David Ljunggren, Jarrett Renshaw, Arathy Somasekhar, Shubham Kalia, Gnaneshwar Rajan and Renju Jose | Notícias Agrícolas
