Trump prices of 25% on steel and aluminum take effect, which caused a threat of EU reprisals

President Trump officially increased prices on all steel and aluminum imports to 25% on Wednesday, promising that they would help create jobs in the American factory at a time when his level threats of level tracks were shaking the stock market and raised fears of economic slowdown, increased inflation and even a world trade war.

The European Union quickly announced that it would retaliate with measures that will take effect on April 1.

“While the United States applies tariffs worth $ 28 billion, we respond with countermeasures worth 26 billion euros ($ 28 billion),” said European Commission Ursula Von Der Leyen in a statement. “We will always remain open to negotiation. We firmly believe that in a world responsible for geopolitical and economic uncertainties, it is not in our common interest to lower our savings with prices.”

French Minister of European Affairs, Benjamin Haddad, said the EU could go even further, adding that a business war was in the interests of anyone, reports the Reuters news agency.

The largest commercial block in the world awaited the American prices and prepared in advance, but the measures are still exerting great pressure on transatlantic relations already tense. Washington warned Europe last month that it should take care of its own security in the future.

EU measurements will not only cover steel and aluminum products, but also textiles, household appliances and agricultural products.

British business and business secretary Jonathan Reynolds said that “all the options were on the table” to answer “in the national interest”, according to Reuters.

He also reported that Australian Prime Minister Anthony Albanese described Trump's move “entirely unjustified … and against the spirit of the lasting friendship of our two nations”, but he excluded the duties of Tit-For-Tat.

“Prices and the climbing of trade tensions are a form of economic self -control, and a higher growth of growth and higher inflation. They are paid by consumers,” Albanian told journalists.

Canada also plans to announce nearly $ 21 billion in reprisals in response to American steel and aluminum samples, a senior Canadian government said on Wednesday. The manager spoke under the cover of anonymity because they were not allowed to speak before the announcement.

Wall Street reacts to Trump's price at CANADA 02:37

Trump has deleted all the exemptions from his 2018 Metal prices, in addition to increasing aluminum tariffs by 10%. Its movement, based on a February directive, is part of a wider effort to disrupt and transform world trade.

The president has separate prices on Canada, Mexico and China, with plans to also impose imports from the European Union, Brazil and South Korea by invoicing “reciprocal” rates from April 2.

Trump told CEOs on Tuesday in the corporate round table that prices made companies invest in American factories. The 8% drop in the stock market index of the S&P 500 in the last month on fears of deteriorating growth seems unlikely to dissuade it, because Mr. Trump argued that higher rate rates would be more effective in bringing factories.

“The more it goes, the more likely it is that they will build,” Trump told the group. “The greatest victory is if they move in our country and produce jobs. It is a greater victory than the prices themselves, but the prices will throw a lot of money into this country.”

Trump threatened Tuesday to put prices of 50% on steel and aluminum from Canada, but reversed the course and chose to stay with the rate of 25% after the province of Ontario suspended its plans to put an additional electricity sold in Michigan, Minnesota and New York.

Trump History Prices

In many ways, the president now addresses what he receives as an unfinished company of his first mandate. Trump significantly increased prices, but the revenues received by the federal government were too small to considerably increase global inflationary pressures.

Trump's 2018 prices on steel and aluminum were eroded by exemptions. After Canada and Mexico accepted its request for a North American trade agreement revised in 2020, they avoided metal import taxes. Other American trade partners had import quotas supplant the prices. And the first Trump administration also allowed American companies to request exemptions from prices if, for example, they could not find the steel they needed national producers.

Although Mr. Trump's prices can help steel and aluminum factories in the United States, they could increase the prices of manufacturers that use metals as raw materials. Economists also say that gains in steel and aluminum industries have been more than offset by the cost they have imposed on “downstream” manufacturers who use their products.

In these downstream companies, production fell by almost $ 3.5 billion due to prices in 2021, a loss that exceeded the increase of $ 2.3 billion in production that year by aluminum producers and Steelmakers, the US international trade committee discovered in 2023.

Trump considers prices as leading to more domestic factories, and the White House noted that Volvo, Volkswagen and Honda all explore an increase in their American footprint. But the prices of an increase in prices, less sales and lower profits could lead certain companies to refrain from investing in new facilities.

“If you are a setting in the conference room, are you really going to say to your board of directors, it's time to extend this assembly chain?” pointed out John Murphy, vice-president of the American Chamber of Commerce.

Lutnick defends Trump's economic policies

In an interview with CBS News on Tuesday, trade secretary Howard Lunick said that the president's economic policies were worth it “, even if they led to a recession.

In a recent interview with Fox News, Trump refused to exclude that his policies, including increasing rates, could cause a recession.

But Lutnick denied that there is chaos in the way the president used prices to put pressure on American business partners.

“It is not chaotic, and the only one thinking that it is chaotic is someone who is silly,” said Libnick.

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