Some are cheering. Others are promising retaliation. As announced by President Donald Trump, the United States has now imposed a 25 percent tariff on steel and aluminum imports from all countries. Several countries have tried to avoid the tariffs, but they have been imposed "without exceptions or waivers," the White House says.
A global trade war is looming. It is already in full swing between the United States and several of the country's most important trading partners.
The EU will respond to the "unjustified" move by imposing tariffs on goods from the United States worth 26 billion euros - almost 194 billion kroner. This will apply from April 1. The European Commission has published a 99-page list of goods that can now be subject to tariffs.
China, the world's leading producer of steel - although not a major exporter of it to the United States - has announced "all necessary measures" in response.
- There are no winners in a trade war, says spokeswoman for the country's Foreign Ministry Mao Ning, repeating the message that has been heard from China since Trump took office.
And then there is the United States' large neighbor to the north, Canada. Relations between the two countries have already been strained since Trump took office, and the latest tariffs are hitting hard.
Canada is the United States' largest supplier of both steel and aluminum. The new tariffs will immediately come on top of those already in place. This means that the tariff rate on American imports of steel and aluminum from Canada and Mexico, both of which are already subject to increased tariffs, will rise to 50 percent. Canada is expected to impose retaliatory tariffs on US goods worth over DKK 140 billion.
Repeat from the last Trump term
When Trump was president for the first time, he also imposed tariffs on steel and aluminium in 2018. 25 percent on steel and ten percent on aluminium. At that time, neighbours Canada and Mexico - the largest and third largest exporters of steel to the US - were exempt. Despite the exemptions, prices for steel and aluminium in the US rose by 2.4 and 1.6 percent respectively. Trump is imposing the tariffs in the hope that they will increase US production of the metals.
The Steel Manufacturers Association, an association of steel producers in the US, praises Trump. This gives the industry the opportunity to create even more high-paying jobs, says chairman Philip Bell.
- By closing loopholes in the tariffs that have been exploited for years, President Trump will once again give a huge boost to a steel industry that is ready to rebuild the United States, he tells Reuters.
Danish Business: "A tariff-related self-defeating goal"
Critics say that the tariffs, in addition to increasing prices for American consumers, will also harm economic growth. The US head of the Danish Chamber of Commerce, Søren Friis Larsen, calls Trump's plans "a tariff goal".
- With this serious protectionism, the US is escalating a completely unnecessary trade war with its closest trading partners to the detriment of both the US and global economy, he says.
US Secretary of Commerce, Howard Lutnick, tells CBS News that Trump's economic policies are "worth it", even if they lead to an economic downturn - recession.
These are the most important policies "America has ever had", he says and rejects criticism that the tariffs are disrupting markets.
- It's not chaotic. The only people who would think it's chaotic are stupid, he says.
His comments came after Trump had dodged questions from Fox News about whether the US is facing a recession and higher prices as a consequence of his tariffs. Instead, the president said the United States is in a "transitional period."
- What we're doing is very big. We're bringing prosperity back to the United States. It's going to take some time, but I think it's going to be good for us, Trump said.
/ritzau/
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