Global backlash intensifies against U.S. tariffs on steel, aluminum
On Tuesday, Mexico, Canada, and the European Union expressed their disapproval of U.S. President Donald Trump's announcement regarding tariffs on all steel and aluminum imports starting next month. This decision has heightened concerns about a potential trade war, as business and political figures prepared for additional trade duty announcements from the new administration.
TroibNews 
Mexico, Canada, and the European Union condemned U.S. President Donald Trump's decision to impose tariffs on all steel and aluminum imports starting next month. This development has escalated concerns about a potential trade war, prompting business and political leaders to prepare for additional tariff announcements from the new administration.
U.S. businesses have expressed worries about the implications of the tariffs. Many manufacturing-centric companies find it challenging to strategize their next moves or discern whether Trump will implement the tariffs as promised. The increase in tariff rates is expected to ripple through the supply chain, affecting all businesses that depend on these materials.
On Monday, Trump signed proclamations that raised the U.S. tariff rate on aluminum from 10 percent to 25 percent, eliminating country exceptions and quota agreements, as well as hundreds of thousands of product-specific tariff exclusions for both metals. These measures, which are set to go into effect on March 12, will impact millions of tons of steel and aluminum imports from Canada, Brazil, Mexico, South Korea, and other countries that were previously entering the U.S. duty-free due to carve-outs.
Mexican Economy Minister Marcelo Ebrard criticized the tariff decision as "not justified" and "unfair," although he did not specify if Mexico would impose reciprocal tariffs on U.S. steel or aluminum imports.
Canadian Prime Minister Justin Trudeau labeled the tariffs as "unacceptable," stating that Canada’s response would be "firm and clear" if necessary during an artificial intelligence summit in Paris.
European Commission President Ursula von der Leyen echoed this disapproval, stating that the 27-nation bloc would respond with "firm and proportionate countermeasures." U.S. Vice President JD Vance mentioned he would speak with von der Leyen about trade and economic matters at the AI summit on Tuesday.
Trump characterized the new tariff structure as straightforward, saying, "It's 25 percent without exceptions or exemptions. That's all countries, no matter where it comes from, all countries."
Analysts highlighted that the most significant effect would likely be on aluminum, which is used in transportation, construction, and packaging. According to Morgan Stanley, net imports make up approximately 82 percent of U.S. aluminum requirements. Following the tariff announcement, the U.S. aluminum premium over the global benchmark on the London Metal Exchange surged by a quarter to 35 cents per pound, representing a 60 percent increase since Trump took office.
Analyst Volkmar Baur at Commerzbank remarked, "Aluminium capacities would have to be massively expanded in a short period of time to replace even a portion of the imports with domestic production."
Trump indicated that he would announce reciprocal tariffs on countries applying duties on U.S. goods in the next two days and is also considering tariffs on cars, semiconductors, and pharmaceuticals. When asked about potential retaliation from other nations regarding his new tariffs, Trump responded, "I don't mind." The White House had not provided updated timing for these announcements by Tuesday afternoon.
In response, von der Leyen warned that U.S. tariffs on steel and aluminum imports from the EU would provoke countermeasures, stating, "Unjustified tariffs on the EU will not go unanswered... We will protect our workers, businesses, and consumers."
European Commissioner for Trade and Economic Security Maros Sefcovic addressed the European Parliament, stating the EU would respond "firmly and proportionately" to the U.S. tariffs and noted, "In our opinion the tariffs are unjustified, because they will lead to an increase in prices and inflation," calling the situation a "lose-lose scenario" that is "economically counterproductive."
German Chancellor Olaf Scholz reiterated the EU's position on countermeasures, stating, "If the U.S. leaves us no other choice, the EU will respond with a united position."
The American Chamber of Commerce to the EU, representing U.S. companies in Europe, criticized the tariffs as detrimental to jobs, prosperity, and security in both regions. It noted, "The damage will extend beyond just the steel and aluminum sectors, impacting all businesses that rely on these materials throughout the supply chain."
Industries dependent on steel and aluminum imports are now scrambling to mitigate the costs associated with Trump's decision, having previously navigated threats of tariffs that were rescinded. Companies like Coca-Cola and Ford, alongside smaller aluminum, aerospace, and appliance manufacturers, expect to feel the impact of these measures. Ford CEO Jim Farley noted that the situation has already caused "a lot of cost and a lot of chaos" for American businesses.
The Coalition of American Metal Manufacturers and Users asserted that the absence of an effective exclusion process would negatively affect U.S. manufacturers, particularly small and medium-sized businesses which would face higher costs for production inputs. They stated, "Foreign customers are shifting their supply chains away from U.S. producers. Once removed, especially for smaller, family-owned businesses, it is difficult to regain that lost business."
The group warned that retaliatory tariffs from important trading partners could further endanger U.S. exports and manufacturing jobs, leading to stalled expansion plans and challenging decisions regarding investments, workforce retention, and long-term growth. According to data from the American Iron and Steel Institute, steel imports comprised approximately 23 percent of American steel consumption in 2023, with Canada, Brazil, and Mexico acting as the largest suppliers, while Canada accounted for nearly 80 percent of U.S. primary aluminum imports in 2024.
Anna Muller for TROIB News
U.S. businesses have expressed worries about the implications of the tariffs. Many manufacturing-centric companies find it challenging to strategize their next moves or discern whether Trump will implement the tariffs as promised. The increase in tariff rates is expected to ripple through the supply chain, affecting all businesses that depend on these materials.
On Monday, Trump signed proclamations that raised the U.S. tariff rate on aluminum from 10 percent to 25 percent, eliminating country exceptions and quota agreements, as well as hundreds of thousands of product-specific tariff exclusions for both metals. These measures, which are set to go into effect on March 12, will impact millions of tons of steel and aluminum imports from Canada, Brazil, Mexico, South Korea, and other countries that were previously entering the U.S. duty-free due to carve-outs.
Mexican Economy Minister Marcelo Ebrard criticized the tariff decision as "not justified" and "unfair," although he did not specify if Mexico would impose reciprocal tariffs on U.S. steel or aluminum imports.
Canadian Prime Minister Justin Trudeau labeled the tariffs as "unacceptable," stating that Canada’s response would be "firm and clear" if necessary during an artificial intelligence summit in Paris.
European Commission President Ursula von der Leyen echoed this disapproval, stating that the 27-nation bloc would respond with "firm and proportionate countermeasures." U.S. Vice President JD Vance mentioned he would speak with von der Leyen about trade and economic matters at the AI summit on Tuesday.
Trump characterized the new tariff structure as straightforward, saying, "It's 25 percent without exceptions or exemptions. That's all countries, no matter where it comes from, all countries."
Analysts highlighted that the most significant effect would likely be on aluminum, which is used in transportation, construction, and packaging. According to Morgan Stanley, net imports make up approximately 82 percent of U.S. aluminum requirements. Following the tariff announcement, the U.S. aluminum premium over the global benchmark on the London Metal Exchange surged by a quarter to 35 cents per pound, representing a 60 percent increase since Trump took office.
Analyst Volkmar Baur at Commerzbank remarked, "Aluminium capacities would have to be massively expanded in a short period of time to replace even a portion of the imports with domestic production."
Trump indicated that he would announce reciprocal tariffs on countries applying duties on U.S. goods in the next two days and is also considering tariffs on cars, semiconductors, and pharmaceuticals. When asked about potential retaliation from other nations regarding his new tariffs, Trump responded, "I don't mind." The White House had not provided updated timing for these announcements by Tuesday afternoon.
In response, von der Leyen warned that U.S. tariffs on steel and aluminum imports from the EU would provoke countermeasures, stating, "Unjustified tariffs on the EU will not go unanswered... We will protect our workers, businesses, and consumers."
European Commissioner for Trade and Economic Security Maros Sefcovic addressed the European Parliament, stating the EU would respond "firmly and proportionately" to the U.S. tariffs and noted, "In our opinion the tariffs are unjustified, because they will lead to an increase in prices and inflation," calling the situation a "lose-lose scenario" that is "economically counterproductive."
German Chancellor Olaf Scholz reiterated the EU's position on countermeasures, stating, "If the U.S. leaves us no other choice, the EU will respond with a united position."
The American Chamber of Commerce to the EU, representing U.S. companies in Europe, criticized the tariffs as detrimental to jobs, prosperity, and security in both regions. It noted, "The damage will extend beyond just the steel and aluminum sectors, impacting all businesses that rely on these materials throughout the supply chain."
Industries dependent on steel and aluminum imports are now scrambling to mitigate the costs associated with Trump's decision, having previously navigated threats of tariffs that were rescinded. Companies like Coca-Cola and Ford, alongside smaller aluminum, aerospace, and appliance manufacturers, expect to feel the impact of these measures. Ford CEO Jim Farley noted that the situation has already caused "a lot of cost and a lot of chaos" for American businesses.
The Coalition of American Metal Manufacturers and Users asserted that the absence of an effective exclusion process would negatively affect U.S. manufacturers, particularly small and medium-sized businesses which would face higher costs for production inputs. They stated, "Foreign customers are shifting their supply chains away from U.S. producers. Once removed, especially for smaller, family-owned businesses, it is difficult to regain that lost business."
The group warned that retaliatory tariffs from important trading partners could further endanger U.S. exports and manufacturing jobs, leading to stalled expansion plans and challenging decisions regarding investments, workforce retention, and long-term growth. According to data from the American Iron and Steel Institute, steel imports comprised approximately 23 percent of American steel consumption in 2023, with Canada, Brazil, and Mexico acting as the largest suppliers, while Canada accounted for nearly 80 percent of U.S. primary aluminum imports in 2024.
Anna Muller for TROIB News
