US President Donald Trump sparked fears of a global trade war by unleashing 25% tariffs on aluminium and steel imports. The unprecedented move – ramping up duty on products entering America – ends all exemptions to levies.
It immediately sparked jitters across the world, pushing countries towards major disputes, but President Trump remained unrepentant as he continued to plough ahead with his America First agenda at the expense of historical allies, saying the hike was « necessary to rebuild our country. »
Britain and Australia have failed to secure get-out clauses, while Canada and the European Union say they will retaliate, raising the prospect of ongoing tit-for-tat economic hostilities.
The tariffs are a major threat to UK steel exports – worth some £350m a year – with the bulk coming from stainless steel.
The crisis was discussed in a call between PM Sir Keir Starmer and Mr Trump on Monday, but the Government has yet to officially respond.
The US is a major importer of aluminium and steel with Canada, Mexico and Brazil among its largest suppliers.
Mr Trump hopes the tariffs will boost US steel and aluminium production as he presses ahead with a promise to make America an economic powerhouse.
But it is likely to escalate tensions with some of America’s largest trading partners and closest allies, including the UK.
While two rounds of extra duties have been slapped on China, 25% rates on other cross-border trade including with the EU have been postponed until April 2.
The tariffs in place today are designed to protect US manufacturing and bolster jobs by making foreign-made products less attractive.
The tolls mean US businesses wanting to bring the metals into the country will have to pay a 25% tax on them. In turn it will lead to higher costs for aerospace, car manufacturing and construction industries even threatening to make the cost of things like soft drinks cans – and therefore the drinks themselves – more expensive.
Gareth Stace, director general of trade association UK Steel, said: « President Trump must surely recognise that the UK is an ally, not a foe. Our steel sector is not a threat to the US but a partner to key customers, sharing the same values and objectives in addressing global overcapacity and tackling unfair trade.
« These tariffs couldn’t come at a worse time for the UK steel industry, as we battle with high energy costs and subdued demand at home, against an oversupplied and increasingly protectionist global landscape. What’s more, the EU is also pushing ahead with trade restrictive action that will amplify the impact of US tariffs. »
Mr Stace added: « It is essential that the UK Government not only continues efforts to negotiate exemptions with the US but also takes decisive action to bolster our trade defences.”
Experts say President Trump’s protectionist agenda could push the world’s largest economy into recession.
During his first term in the White. House Mr Trump imposed import tariffs of 25% on steel and 10% on aluminium, but cooled on trade as he negotiated carve-outs for many countries, including Britain and Australia.
But President Trump has said he will not be granting the same sort of exclusions and exemptions this time.
White House spokesperson Kush Desai said: « Pursuant to his previous executive orders, a 25% tariff on steel and aluminium with no exceptions or exemptions will go into effect for Canada and all of our other trading partners at midnight, March 12.”
Meanwhile, President Trump said he would buy a Tesla in a show of support for Elon Musk as the electric vehicle maker’s sales and share price tanked because of the world’s richest man’s side job as head of the White House Department of Government Efficiency which aims to cut costs.
He said “radical left lunatics” are “illegally and collusively” boycotting Tesla, which President Trump called one of the best car makers in the world.
In a post published on Truth Social he said: “I’m going to buy a brand new Tesla as a show of confidence and support for Elon Musk, a truly great American.”
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