The 25% tariffs on steel and aluminum imposed by Donald Trump took effect today, marking a new phase in the trade war between the U.S. and key trading partners, including Canada, Mexico, China, and the EU.
Trump had previously imposed tariffs on steel and aluminum imports during his first term (2017-2021), but the new tariffs apply universally, with no exceptions or exemptions.
His stated goal is to protect the U.S. steel industry, which has seen declining production amid growing competition, particularly from Asia.
In response, the EU announced plans to impose “equivalent” tariffs (€26 billion) on U.S. goods, ranging from bourbon to ships, according to the European Commission.
Concerns about a potential U.S. recession, fueled by the trade war and investor uncertainty over Trump’s next steps, are growing, with the president himself not ruling it out.
Yesterday, financial markets saw renewed volatility following Trump’s tariff decisions on Canadian imports. He initially threatened to double tariffs on steel and aluminum from Canada to 50% but later withdrew the announcement.
