(CLO) US President Donald Trump imposed a 25% tariff on steel and aluminum imported into the US on Wednesday, a move that threatens to skyrocket prices for consumer and industrial goods.
Mr. Trump claimed that this measure is to “ensure national security,” as manufacturing industries are heavily dependent on foreign supplies of steel and aluminum. According to statistics, the US imports more than $30 billion worth of steel and aluminum each year, of which Canada accounts for 17% of imported steel.
This decision immediately caused strong reactions from major trading partners such as Canada, the European Union (EU), China and Japan, igniting the risk of a new trade war.
US President Donald Trump. Photo: White House
The EU has announced it will impose retaliatory tariffs worth $28 billion on US goods, including Harley-Davidson motorcycles, whiskey and Levi's jeans.
For China, which has already been hit by a 20% tariff on all US exports to the US, the total tariff on Chinese steel and aluminum now stands at 45%. Beijing has said it will take “all necessary measures” to protect its national interests.
Japan, which accounts for just 4% of steel imports into the US, was also disappointed that it was not exempted, fearing that the higher tariffs would burden its auto industry, which relies on North American supply chains.
With Canada, the largest trading partner and the largest source of US steel and aluminum, before imposing tariffs, Mr. Trump planned to increase tariffs to 50% on the country but then withdrew when Ontario Premier Doug Ford agreed to postpone the US electricity surcharge.
In the U.S., the decision is expected to protect domestic manufacturers, but it has also raised concerns. Steel prices have risen more than 30% in the past two months and aluminum prices have risen 15%. Domestic companies are facing rising production costs, especially in the auto, home appliance and food packaging industries.
Ngoc Anh (according to WH, Fox News, AFP)
Source: https://www.congluan.vn/my-ap-thue-25-len-thep-va-nhom-nhap-khau-cac-nuoc-phan-ung-du-doi-post338175.html
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