Trump Officially Imposes 25% Tariffs on Steel and Aluminum Imports, EU Responds with Countermeasures - Coinfea

Trump has enforced a 25% tariff on all steel and aluminum imports, removing the exemptions since 2018

ContentsTariffs implemented despite economic concernsMixed reactions from automakers and business leadersEU implements counter-tariffs on U.S. goodsThe decision aligns with his objective of reducing imports to boost U.S. manufacturing jobs. The tariffs affect Canada, Mexico, China, the European Union, Brazil, and South Korea.

Tariffs implemented despite economic concerns

The new tariffs come as the stock market faces pressure, with the S&P 500 dropping 8% in the last month amid recession fears. Despite this, Trump remains firm, arguing that the tariffs will encourage companies to relocate their manufacturing operations to the United States. Speaking at a Business Roundtable meeting, he stated that the most significant benefit would be creating domestic jobs

While U.S. steel and aluminum producers saw a $2.3 billion increase in revenue due to higher demand, downstream manufacturers experienced a $3.5 billion loss in production, according to a U.S. International Trade Commission report. Trump had previously considered doubling the tariffs on Canadian steel and aluminum. However, he decided against the move after Ontario refrained from imposing an electricity surcharge in response.

## Mixed reactions from automakers and business leaders

Several major automakers, including Volvo, Volkswagen, and Honda, have announced plans to expand operations in the United States. However, concerns remain about the impact of rising production costs on sales and profitability. John Murphy, senior vice president of the U.S. Chamber of Commerce, questioned whether executives would approve expansion plans given the uncertainty surrounding tariffs. He emphasized that business leaders must weigh the risks before making investment decisions.

EU implements counter-tariffs on U.S. goods

The European Union initiated retaliatory actions against US exports totaling $28 billion after the new tariff imposition. The EU Commission stated that their tariffs against U.S. goods would enter into effect during two consecutive phases starting April 1 then reaching complete implementation on April 13.

EU Commission President Ursula von der Leyen stated that the response mirrors the economic impact of the U.S. tariffs. She expressed willingness to engage in discussions to find a resolution. Trade Commissioner Maros Sefcovic is set to continue negotiations with U.S. officials to ease tensions and explore alternative trade solutions.