President Donald Trump has pledged to impose more tariffs after his latest move to introduce import taxes on steel and aluminium entering the US prompted retaliation from the European Union (EU) and Canada.
Donald Trump said “of course” he would respond to the countermeasures, repeating his warning to reveal “reciprocal” tariffs next month on countries around the world.
“Whatever they charge us with, we’re charging them,” he said.
The threat marked a further escalation of a trade war which has rattled financial markets amid concerns over the impact on the economies and consumers in many countries around the world, including the US.
On March 12, President Trump moved forward with a plan to widen US tariffs on steel and aluminium, imposing a blanket duty of 25% and ending exemptions that the US had previously granted for shipments from some countries.
That followed an order earlier this month that raised levies on Chinese imports into the US to at least 20%.
Image source: Wikimedia Commons
President Trump has also threatened tariffs – which are taxes applied to goods as they enter a country – on a range of more specific items, including copper, lumber and cars.
Leaders in Canada and Europe called the new metals taxes unjustified and struck back with their own tariffs on a range of US products.
Other countries that are key US suppliers of metals, including the UK, Australia, Mexico and Brazil, held off on any immediate retaliation.
Canada said from March 13 it would start charging a 25% tax on nearly C$30bn ($20bn) worth of US products, including steel, computers and sports equipment.
The EU said it would raise its levies on up to €26bn ($28bn) worth of US goods, including boats, bourbon and motorbikes, from April 1.
EU President Ursula von der Leyen said the response was intended to be „strong but proportionate” and added that the EU stood „ready to engage in a meaningful dialogue”.
„Tariffs are taxes. They are bad for business and worse for consumers,” she said, warning the economic disruption put jobs at stake and would send prices higher.
„Nobody needs that – on both sides, neither in the European Union nor in the United States.”
Donald Trump had said he wants to boost US steel and aluminium production in the longer run, but critics say in the immediate term the taxes on imports of the metals will raise prices for US consumers and dent economic growth.
