Trump escalates international trade war with 25% tariffs on steel and aluminum

WashingtonPresident Donald Trump has escalated his trade war with China internationally. After applying an additional 10% tariff on imports from Beijing, Trump signed this Monday 25% taxes on imports of aluminum and steel from all countries. The measure comes a week after the tycoon ended up temporarily stopping the 25% tariffs for Mexico and Canada.

During the signing, the president has said again that in the next few days he will also impose reciprocal tariffs. When the journalists who were in the Oval Office asked the tycoon if he is not worried that the rest of the countries will respond with more taxes on American imports, Trump has answered: "I don't care."

Trump has signed the application of the new tariffs at the same time that in China the new commercial tariffs on American imports came into effect in response to the 10% tariffs. The tariff imposed by the Asian giant is 15% on coal and liquefied natural gas and 10% on crude oil, agricultural machinery and some vehicles.

On Sunday, in a conversation with journalists on Air Force One on the way to the NFL Super Bowl, which was held in New Orleans, he already announced his intention to apply tariffs on steel and aluminum. "It's very simple, if they charge us, we charge them," said the magnate, who also announced that he wanted to apply reciprocal tariffs with other countries. On several occasions, Trump has threatened to impose tariffs in Europe under the same pretext. In his speech in Davos, the president lamented that the European Union "treats us unfairly and very badly."

The main sources of steel imports for the United States are Canada, Brazil and Mexico, followed by South Korea and Vietnam, according to government data and the American Iron and Steel Institute collected by Reuters. Canada is by far the largest supplier of primary aluminum metal to the US, accounting for 79% of total imports through the first 11 months of 2024. During his first term, Trump imposed 25% tariffs on steel and 10% on trade tariffs on the Canal, as he now conceded, for example. Although he later reapplied the tariffs in Canada.

Trump had already used tariff pressures on those occasions as a way to force concessions from other countries. A study by the International Trade Commission concluded that tariffs on these materials during the Republican's first term increased the price of imports and resulted in higher costs for industries using these metals. In total, steel and aluminum-consuming industries saw their production reduced by $3.48 billion due to tariffs, a loss greater than the profits of American steel and aluminum producers.

Trump is once again repeating the same strategy, but scoring effective victories with his neighbors Mexico and Canada. Both pledged to reinforce their borders with the United States in exchange for a temporary truce on the application of the 25% tariffs.

The reality, however, is that Canada had already approved a $1.3 billion plan to reinforce the border in December of last year, although Trump tried to sell it as a success of his pressures. In reality, what the Republican really got were many promises from Canadian President Justin Trudeau, such as appointing a "fentanyl czar" (a gesture towards his border czar) and raising the possibility of declaring the cartels as terrorist organizations (as Trump did), and only one tangible measure from 2000 to 2010: 2009

Canada, main exporter

"Canadian steel and aluminum support key U.S. industries, from defense to shipbuilding to automobiles," Canadian Innovation Minister Francois-Philippe Champagne wrote on X. "Quebec exports 2.9 million tons of aluminum [to the United States] China?" said François Legault, Premier of Quebec, adding: "We must begin renegotiating our free trade agreement with the United States as soon as possible."

Trump has long complained that the EU's 10% tariffs on automobile imports are much higher than those of the United States on cars, which are 2.5%. However, the United States imposes a 25% tariff on pickup trucks. pick-up, a vital source of profit for the US operations of Detroit automakers General Motors, Ford and Stellantis. According to World Trade Organization data, the average weighted tariff rate on US trade is 2.2%, compared with 12% for India, 6.7% for Brazil, 5.1% for Vietnam and 2.7% for European Union countries.

Von der Leyen warns: 'Unjustified tariffs against EU will not go unchallenged'

Brussels continues to issue warnings to Trump, but has not yet made any decision on the imposition of new tariffs by the Republican administration. "The unjustified tariffs against the EU will not go unanswered," insisted in an urgent statement this morning the president of the European Commission, Ursula von der Leyen, who "deeply regrets" the decision of the New York magnate. Thus, the community leader assured that the European bloc will act to "safeguard the economic interests" of the EU and promised that it will "protect European workers, companies and consumers."

Meeting between the Spanish government and the sector

Meanwhile, in Spain, the Minister of Economy met with the sector on Monday to evaluate the announcement. "I want to send a message of confidence and support to the steel and aluminium sector," stressed the Minister of Economy, Carlos Cuerpo, who argued that it is "vital" to avoid this type of measures. "These are measures that are harmful to everyone," he said.

The Spanish Association of Aluminium and Surface Treatments (AEA), which represents more than 650 companies in the sector in the State, has also called for "calm." "It is premature to draw conclusions," it said. Spain exports 20,000 tonnes of aluminium a year to the United States, which translates into some 130 million euros.