The entry into force of the duty 25% to the steel and the aluminum taxes by USA has unleashed a wave of responses by its main business partners, marking a new phase of tensions in the international trade.
Its tariff strategy has been changing, with constant adjustments in the percentages, the affected countries and the implementation deadlines. In January he announced that as of February it would impose Tariffs to Mexico and Canadabut then postponed them for March and, later, he postponed them again to the April 4.
In the case of Chinafirst established a tariff of the 10%then raised it to 20%and finally set him in 25%. In addition, it extended the rates to Argentina, Ireland, the European Union and Brazil. In a statement, Trump said that the only country with which he would consider some type of negotiation or tariff agreement would be Russiaalthough there are no clear details about this possibility.
More recently, the president expanded tariffs at agricultural importsalthough it has not yet specified the exact percentage of the new rates.
What are the reactions of the countries to tariffs?
Countries have responded in different ways to the imposition of tariffs by the United States: some have Applied reciprocal ratesothers have requested talks And some have decided Do not take action for now.
Next, we present some of the main reactions:
China and the EU condemn US measures
China
- The second largest economy in the world and the main steel producer.
- Described the decision as a serious violation of the rules of the World Trade Organization (WTO).
- He announced that he will take the necessary measures to defend his interests.
- The spokeswoman of the Ministry of Foreign Affairs, Mao nonecriticized Washington’s position.
- He stressed that these actions put the multilateral trade system at risk.
European Union (EU)
- Reactivated tariffs imposed on the 2018 and 2020.
- Complemented with new rates that affect iconic US products.
- Bourbon (Whiskey)
- Harley-Davidson motorcycles
- Yates
- In total, you will apply tariffs to US imports valued at US $28 billion.
Canada and Mexico respond with caution
Canada
- It is the country most affected by tariffs due to its high participation in the US aluminum and steel market.
- Will implement retaliation tariffs on US goods valued at US $20 thousand 700 millionas of March 13.
- The Minister of Finance, Dominic Leblanche described Washington’s measure as “Unjustified and unreasonable”.
Mexico
- Key partner within the T-MEC.
- Has decided to wait until April 2 before announcing any reprisal.
- The President Claudia Sheinbaum He pointed out that his government is evaluating the situation before making a definitive decision.
Other international reactions
Brazil
- It is one of the largest steel exporters to the US.
- He chose not to respond with retaliation measures.
- The Minister of Finance, Fernando Haddadsaid Brazil will not take immediate actions, unlike the EU and Canada.
United Kingdom
- Expressed his “disappointment” before the US decision.
- He ruled out, for the moment, to adopt reprisals.
Japan
- He regretted not having been excluded from tariffs.
- He has not announced countermeasures for now.
Economic impact and affected sectors
USA approximately half of the steel and aluminum which consumes in strategic sectors such as Automotive industry, aerospace and petrochemical. With the imposition of these dutythe supply chains of multiple countries will be affected.
Canada It is the main one supplier of these metals for USA.with a 50% of aluminum imports and 20% of steel. Brazil (17% of the steel imported by the USA) and Mexico (10%) They will also face significant impacts. In the sector of aluminum, United Arab Emirates, South Korea, Baréin and China They will be the most affected countries, with Exports that represent between the 3% and 6% of the American total.
Trump defends his tariff strategy
From the beginning of your Second mandatethe president Donald Trump has used the duty as a key tool of Commercial negotiationarguing that They protect the American industryThey encourage local investment and generate income for the country.
He US Commercial Representative., Jamieson Gererdefended politics Tariff And he accused the EU to ignore “the security imperatives of USA” Trumpfor his part, he said that he will respond to any reprisal with New rates.
Temporary suspension for Mexico and Canada
To an unexpected extent, Trump announced the Tariff suspension to Mexico and Canada products for a month, until the April 2. The decision occurred after a conversation with the President of Mexico, Claudia Sheinbaumand an evaluation of the Commercial relationship with Canada.
Trump praised the efforts of Mexico in it migration control and the Fentanyl trafficking combathighlighting that “Our relationship has been very good and we are working together” Sheinbaummeanwhile, confirmed the Temporary agreement And he pointed out that the talks To avoid New rates.
He Canada’s Prime Minister Mark Carneyalso showed disposition to directly dialogue with Trump About the commercial relationship between both countries
Consequences for the global economy
The New tariffs They can generate Price increases of imported products, affecting both consumers and companies.
In addition, they can cause A deceleration in international tradeaffecting the economic growth of several countries.
How will this affect consumers?
- In affected countries, exports can decreasewhich will impact local employment and economy.
He April 2 It will be one Key date To determine if USA. You will keep your duty or if the negotiations with your allies They manage to stop the escalation of commercial tensions. Meanwhile, the economies of the affected countries already