The commercial war increases as 25% Trump metal tariffs enter into force

Tariffs imposed by US President Donald Trump on steel and aluminum imports have entered into force in a movement that will probably increase tensions with some of the largest commercial partners in the United States.

The measure increases a flat service on steel and aluminum that enters the US to 25% and ends all exemptions from countries to taxes.

Several countries, including the United Kingdom and Australia, have tried to secure the tals without success. Others, including Canada and the European Union, have said they will retaliate.

Trump expects tariffs to boost the production of steel and aluminum in the United States, but critics say it will raise prices for US consumers and shit economic growth.

The American Iron and Steel Institute (AISI), a group that represents steel manufacturers in the United States, welcomed tariffs saying that they will create jobs and boost the manufacture of national steel.

The president of the group, Kevin Dempsey, said the measure closed a system of exemptions, exclusions and quotas that allowed foreign producers to avoid tariffs.

“Aisi applauds the president’s actions to restore the integrity of tariffs in steel and implement a robust and revitalized program to address unfair commercial practices,” Dempsey added.

The United States is an important importer of aluminum and steel, and Canada, Mexico and Brazil are among its largest metal suppliers.

Other countries have responded immediately.

The United Kingdom Commerce, Jonathan Reynolds, said he was disappointed and that “all options were on the table” to respond in national interest.

The European Commission said in a statement that it is imposing tariffs contrary to 26 billion euros (£ 21.9 billion, $ 28.3 billion) of goods in the United States.

Australia Prime Minister Anthony Albanese said that Trump’s administration decision to move forward with the new tariffs is “completely unjustified.”

“It is against the spirit of the lasting friendship of our two nations and fundamentally disagree with the benefits that our economic association has provided for more than 70 years,” he added.

Albanese, who had been trying to ensure an exemption to tariffs, also said that Australia will not impose retaliation tasks because such a measure would only increase prices for Australian consumers.

Meanwhile, Canada’s Minister of Energy, Jonathan Wilkinson, told CNN that his country would retaliate, but added that Canada is not looking to increase tensions.

Canada is one of the closest commercial partners in the United States and the largest steel and aluminum exporter to the United States.

Tariffs mean that US companies who wish to take metals to the country will have to pay a 25% tax on them.

This is likely to lead to higher costs for a large number of American industries, including aerospace, car manufacturing and construction.

Michael Dimarino directs Linda Tool, a Brooklyn company that makes pieces for the aerospace industry. Everything that does imply some type of steel, much of which comes from Americans.

“If I have higher prices, I transfer them to my clients. They have higher prices, they pass it to the consumer,” said Dimarino, adding that he supports the call to greater manufacturing in the US. UU. But warns the president’s movements.

The American Automotive Policy Council, a group that represents car giants such as Ford, General Motors and Stellantis, also echoed such concerns.

“We are still reviewing and waiting for all the details of the proposed tariffs, but we are concerned that specifically revoking exemptions for Canada and Mexico will add significant costs for our suppliers,” said Matt Blunt, president of the organization.

Some economists warn that tariffs could help steel and aluminum industries in the United States, but harm the economy in general.

“Protects the industries (of steel and aluminum), but harms the users downstream of their products by making them more expensive,” said Bill Reinsch, a former official of the Department of Commerce, who is now at the Center for Strategic and International Studies.

The fear of the economic cost of Trump’s commercial rates has caused a sale of sale rooms in the US who accelerated this week after the president of the United States refused to rule out the possibility of an economic recession.

The S&P 500 index of the largest companies that appear in the US.

The FTSE 100 Actions Index of the United Kingdom, which had exceeded the earliest Tuesday on Tuesday, fell even more and closed more than 1%. The French index Cac 40 and the German Dax followed a similar pattern.

Meanwhile, the economic research firm, Oxford Economics, said in a report that it had reduced its prognosis of economic growth of the United States for the year from 2.4% to 2%, the further pronounced adjustments to Canada and Mexico.

“Despite the reduction, we still hope that the US economy will exceed the other important advanced economies in the coming years,” added its report.

“The uncertainty around the road for the tariffs of us is higher than ever.”

Earlier on Tuesday, the United States and Canada Doje behind the edge of a great escalation in the commercial war.

That was after Trump said he had stopped a plan to double US tariffs on Canadian imports of steel and metal at 50%, just a few hours after threatening them first.

The president’s measure occurred after the Canadian province of Ontario suspended new 25% positions for electricity that sends some northern states of the United States.

Despite the climbing, Canada will continue to face the Trump 25% rate on steel and aluminum imports that have just come into force.

Additional Michelle Fleury reports in New York