Mexico, Canada, and the European Union strongly condemned former U.S. President Donald Trump’s decision to impose steep tariffs on all steel and aluminium imports, a move that has escalated fears of a global trade war.
The decision, signed by Trump late Monday, raises the tariff on aluminium to 25% from the previous 10% and removes all country-specific exemptions and product exclusions. The tariffs, set to take effect on March 12, will impact millions of tons of steel and aluminium imports from key trading partners, including Canada, Mexico, Brazil, and South Korea.
International Backlash
Mexican Economy Minister Marcelo Ebrard denounced the tariffs as “not justified” and “unfair.” Canadian Prime Minister Justin Trudeau called them “unacceptable” and warned of potential countermeasures.
European Commission President Ursula von der Leyen echoed the criticism, vowing the EU would respond with “firm and proportionate countermeasures.” Von der Leyen, speaking in Paris during an AI summit with U.S. Vice President JD Vance, said tariffs would harm both businesses and consumers.
“Unjustified tariffs on the EU will not go unanswered,” she stated. “The EU will act to safeguard its interests.”
The European Union is now considering reactivating retaliatory tariffs initially imposed in 2018 under a trade dispute. These measures, which had been suspended under a truce between the EU and then-President Joe Biden, targeted U.S. products like bourbon, motorcycles, and orange juice.
Trump Stands Firm on Tariffs
Trump defended the move, stating that it would simplify trade policy.
“It’s 25% without exceptions or exemptions,” Trump told reporters. “That’s all countries, no matter where it comes from.”
He also signaled further trade actions, including potential tariffs on automobiles, semiconductors, and pharmaceuticals.
When asked about the likelihood of retaliation from other nations, Trump dismissed concerns: “I don’t mind.”
Global Economic Impact
The tariffs have already sent ripples through global markets. Gold prices surged to a record high on Tuesday as investors sought safe-haven assets, though prices later retreated.
The American Chamber of Commerce to the EU warned that the tariffs would have widespread consequences beyond the steel and aluminium industries. “The damage will extend throughout the supply chain, impacting jobs, prosperity, and security on both sides of the Atlantic,” the group stated.
Canada Prepares to Defend Its Industry
Canada, the largest supplier of primary aluminium to the U.S., has vowed to defend its economic interests.
Speaking from the AI summit in Paris, Trudeau emphasized Canada’s resolve. “Canadians will stand up strongly and firmly if we need to,” he said.
Targeting China and Russia
In addition to the tariffs, Trump announced new requirements for steel and aluminium imports to be “melted and poured” or “smelted and cast” in North America. The measure aims to curb the influx of minimally processed metals from China and Russia that evade existing trade restrictions.
While China exports only a small volume of steel directly to the U.S., Washington has long accused Beijing of flooding the global market with subsidized production, forcing other nations to reroute exports and engage in transshipment to avoid tariffs.
What’s Next?
With the new tariffs set to take effect in just over a month, global trade tensions are poised to escalate. The EU, Canada, and Mexico are now weighing their options for retaliation, setting the stage for another potential trade war.
