Key Points
- The U.S. raised aluminum tariffs to 25%, removing country exemptions for steel and aluminum imports.
- Mexico, Canada, and the EU strongly condemned the decision, warning of potential countermeasures.
- Trump hinted at additional tariffs on automobiles, semiconductors, and pharmaceuticals.
- A new North American standard will limit Chinese and Russian steel and aluminum from entering the U.S. market.
The United States has sparked international criticism after President Donald Trump announced new tariffs on all steel and aluminum imports. The move, which will take effect on March 12, has raised concerns about escalating trade tensions, with Mexico, Canada, and the European Union strongly condemning the decision.
Trump signed proclamations on Monday, increasing the aluminum tariff rate to 25% from 10% and eliminating country exemptions and product-specific exclusions. The new measures will impact millions of tons of steel and aluminum imports from Canada, Mexico, Brazil, and South Korea, which had previously enjoyed duty-free access under special carve-outs.
Mexican Economy Minister Marcelo Ebrard labeled the decision “unjustified” and “unfair,” though he did not confirm whether Mexico would retaliate with counter-tariffs. Similarly, Canadian Prime Minister Justin Trudeau called the move “unacceptable,” warning that Canada would respond firmly if necessary.
European Commission President Ursula von der Leyen also condemned the tariffs, stating that the EU would take “firm and proportionate countermeasures.” One possible response from the EU is to reactivate tariffs imposed in 2018 on American products such as bourbon, motorcycles, and orange juice, suspended under a previous trade truce.
Trump justified the tariff hike by stating, “It’s 25% without exceptions or exemptions. That’s all countries, no matter where it comes from.” He also hinted at further reciprocal tariffs on other sectors, including automobiles, semiconductors, and pharmaceuticals.
Businesses that rely on steel and aluminum imports are already feeling the pressure. Ford Motor CEO Jim Farley warned that the tariffs add “a lot of cost and a lot of chaos” to the industry. The American Chamber of Commerce to the EU also criticized the decision, warning of negative consequences for jobs and economic stability.
Trump’s policy also includes a North American standard that requires imported steel and aluminum to be processed within the region. This measure is intended to prevent minimally processed Chinese and Russian metals from circumventing existing tariffs.
