On Tuesday, Mexico, Canada, and the European Union expressed strong opposition to U.S. President Donald Trump’s decision to impose tariffs on all steel and aluminum imports, a move that has raised concerns about a potential trade war. Business and political leaders in the U.S. are bracing for further trade duty announcements from the new administration.
Key Highlights:
Tariff Increases:
Trump announced a hike in the U.S. tariff rate on aluminum from 10% to 25%, eliminating previous country exceptions and quotas, affecting millions of tons of imports from countries like Canada, Brazil, Mexico, and South Korea.
The tariffs are set to take effect on March 12.
Reactions from Leaders:
Marcelo Ebrard, Mexico’s Economy Minister, called the tariffs “not justified” and “unfair,” though he did not specify if Mexico would retaliate.
Canadian Prime Minister Justin Trudeau labeled the tariffs as “unacceptable,” promising a firm response if necessary.
Ursula von der Leyen, President of the European Commission, stated that the EU would implement “firm and proportionate countermeasures” against the U.S. decision.
Impact on Businesses:
U.S. businesses, especially those in manufacturing, warned of significant fallout from the tariffs, complicating planning and operations.
The American Chamber of Commerce to the EU criticized the tariffs as detrimental to jobs and prosperity on both sides of the Atlantic.
Economic Concerns:
Executives from various industries, including Coca-Cola and Ford, expressed concerns about rising costs and chaos in American business operations due to the tariffs.
The Coalition of American Metal Manufacturers and Users (CAMMU) warned that the lack of a workable exclusion process would disproportionately harm small- and medium-sized manufacturers.
Trade Dynamics:
Steel imports accounted for approximately 23% of U.S. steel consumption in 2023, with Canada, Brazil, and Mexico being the largest suppliers.
Canada supplied nearly 80% of U.S. primary aluminum imports in 2024.
New Standards:
Trump announced a new North American standard requiring steel to be “melted and poured” and aluminum to be “smelted and cast” within the region, aimed at curbing imports of minimally processed metals from China and Russia.