Trade war escalates while Trump’s 25% metal tariffs enter into force

Tariffs imposed by US President Donald Trump for imports of steel and aluminum have entered into force in a move that is likely to escalate tensions with some of American shopping partners.

The measure raises a flat duty of steel and aluminum that enter the US at 25% and ends all exemptions in the country on the levies.

Several countries, including the United Kingdom and Australia, tried to secure the cutout. Others, including Canada and the European Union, said they would take revenge.

Trump hopes that tariffs will increase American production of steel and aluminum, but critics say they will increase prices for US consumers and economic recess growth.

The American Institute of Iron and Steel (AISI), a group representing American steel producers, welcomed the tariffs saying that it would create jobs and increase homemade steel production.

Group President Kevin Dempsey said he had been transferred to closed the exemption, exclusion and quota system that made it possible for foreign manufacturers to avoid tariffs.

“Aisi welcomes the president’s actions to restore the integrity of the tariff to steel and implement the robust and re -geogated program to resolve dishonest trade practices,” added Mr. Dempsey.

Now they are the main importer of aluminum and steel, and Canada, Mexico and Brazil are among the largest metal suppliers.

Tariffs mean that US companies that want to bring metals to the country have to pay a 25% tax on them.

This is likely to lead to higher costs for a large number of US industries, including aviation, car production and construction.

Michael Dimarino runs Linda Tool, a company with 17 Brooklyn persons who make up the aircraft industry parts. Everything it makes involves some kind of steel, much of which comes from American mills.

“If I have higher prices, I forward them to my customers. They have higher prices, they transfer them to the consumer,” said Mr. Dimarino, adding that he supports the call for increased production in the United States, but warning the presidential movement of the risk of movement.

The US Automobile Policy Council, a group that represents giants of cars like Ford, General Motors and Stellantis, has also echoed such problems.

“We are still reviewing and waiting for all the details of the proposed tariffs, but they are concerned that the exemption 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 the American steel and aluminum industry, but hurt the wider economy.

“Protect [the steel and aluminium] Industry, but it hurts downstream users of their products, making them more expensive, “said Bill Reinsch, a former trade department who is now at the Center for Strategic and International Studies.

In 2018, during his first term of his first term, Trump imposed imports of imported tariffs of 25% and 10% on aluminum, but in the end he negotiated the carvings for many countries.

Several countries, including the UK and Australia, which were previously released from paying such tariffs, asked them to avoid them once again.

But President Trump said he would not approve of the same exclusion and exemption he did in his first term.

Responding to the tariffs entering into force, the Australian Prime Minister, Anthony Albanese, said at a press conference that the decision of Trump’s administration was to continue with new tariffs “completely unjustified”.

“It is against the spirit of the lasting friendship of our two nations and the basis contrary to the benefits that our economic partnership has brought for more than 70 years,” he added.

Albanese also said that Australia would not impose reciprocal tariffs of the US because such a move would only encourage prices for Australian consumers.

Meanwhile, Canadian Energy Minister Jonathan Wilkinson told CNN that his country would give up, but added that Canada does not want to escalate tensions.

Canada is one of American closest trade partners and the largest exporter of steel and aluminum in the US.

The European Union also said he would return to Trump’s move.

Last month, the Government of the UK signaled that he was looking for an exemption to the tariffs, adding that she would not revenge immediately.

The fear of the economic costs of Trump’s trade tariffs has encouraged Sleep in the United States -ui global stock markets which accelerated this week after the US president refused to exclude the prospects for economic recession.

The S&P 500 largest companies listed in the USA fell on Tuesday by an additional 0.7% after dropping 2.7% on Monday, which was its biggest one-day fall since December.

The FTSE 100 Stock Index, which was lower lower on Tuesday, fell further and closed more than 1%. The French Index Cac 40 and the German Dax followed a similar pattern.

Meanwhile, the Economic Research Company, Oxford Economics, said that in the report that it had reduced its economic growth forecast in the US from 2.4% to 2%, it made even more steep adjustments to Canada and Mexico.

“Despite the reduction, we still expect the US economy to surpass other major advanced economies over the next few years,” his report added.

“Uncertainty about the trail for US tariffs is greater than ever.”

Earlier on Tuesday, USA and Canada Stepped down from the edge large escalations in the trade war.

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

The President’s move followed after the Canadian province of Ontario suspended new allegations of 25% on electricity sent to some northern countries in the United States.

Despite the rise, Canada will continue to face Trump’s 25% tariff on the imports of steel and aluminum that have just entered into force.

Additional Michelle Fleury reporting in New York