In the latest move of US government's tariff war, US tariffs on steel and aluminum doubled to 50 percent as of 12:01 am ET on Wednesday, US media outlets reported. With the move taking effect, multiple economies, such as Canada, Mexico and EU, have voiced concern or opposition.
US President Donald Trump has signed an order doubling tariffs on steel and aluminum imports from 25 percent to 50 percent, with the higher tariff set to go into effect on Wednesday, according to an announcement released by the White House official website.According to the announcement, tariffs on steel and aluminum imports from the UK will remain at 25 percent, with possible changes or quotas starting July 9, depending on the status of the US-UK Economic Prosperity Deal.Mexico will ask the US government this week to be exempted from an increase in steel tariffs to 50 percent, the country's economy minister Marcelo Ebrard said, Bloomberg reported on Wednesday. "It's not fair and it's unsustainable. We will present our arguments on Friday to exclude Mexico from this measure," said Ebrard.In response to US' latest tariff measure, Canadian Prime Minister Mark Carney said that Canada is in "live negotiations" with the US to remove all tariffs on Canadian goods, the National Post reported. "The additional tariffs on Canadian steel and aluminum announced today by the US are unlawful and unjustified," Carney said in a statement Tuesday evening local time.Robert Budway, the president of the Can Manufacturers Institute, said doubling the steel tariff would further increase the cost of canned goods at the grocery store, the New York Times reported on Wednesday. "This cost is levied upon millions of American families relying on canned foods picked and packed by U.S. farmers and can makers," he said, per the New York Times.Trump announced the tariff-raising decision during a speech at a United States Steel Corp. plant in Pennsylvania last Friday, the Bloomberg reported. "It's at 25 percent, they can sort of get over that fence; at 50 percent they can no longer get over the fence," he was quoted by Bloomberg as saying.He later announced in a social media post that the aluminum tariff would also rise to the same level, per Bloomberg.CNN reported on Wednesday that the new tariff move, though cheered by the beleaguered American steel industry, but worrisome to sectors that heavily use the metals, from car makers to can manufacturers.Many analysts have also warned that stark new levies can make it difficult for the steel industry to adjust, AP reported Wednesday.Some organizations representing metal workers also note that tariffs aren't the only solution needed to boost US manufacturing, per AP.After Trump's Friday announcement, the European Commission said it is prepared to impose retaliatory measures against US's latest move on steel and aluminum tariffs, POLITICO reported on Sunday."We strongly regret the announced increase of US tariffs on steel imports from 25 percent to 50 percent," the EU executive said on Saturday in an emailed statement, per POLITICO. "This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic," it said."The tariff increase also undermines ongoing efforts to reach a negotiated solution," the Commission said. "In good faith, the EU paused its countermeasures on April 14 to create space for continued negotiations. The EU is prepared to impose countermeasures, including in response to the latest US tariff increase," it said.Australia's trade minister, Don Farrell, also said in a statement on Saturday that "Australia's position has been consistent and clear. These tariffs are unjustified and not the act of a friend," the Guardian reported."They are an act of economic self-harm that will only hurt consumers and businesses who rely on free and fair trade. We will continue to engage and advocate strongly for the removal of the tariffs," Farrell said, per the Guardian.
