Donald Trump to impose Tariffs: On Wednesday, President Donald Trump announced that he will impose a 25% tax on all steel and aluminum imported into the United States.
This move aims to support American manufacturing by making it harder for foreign competitors to sell their products in the U.S. However, it could lead to higher prices for a wide range of goods that Americans buy, both for home and industry.
Interestingly, these tariffs might actually harm every industry they were meant to help. Alcoa, a major aluminum manufacturer in the U.S., warned that these tariffs could result in the loss of 100,000 jobs nationwide, including 20,000 jobs in the aluminum sector alone.
Moreover, these tariffs risk provoking a global trade conflict. Shortly after their announcement, the European Union responded by implementing its own taxes on American products, while Canada announced over $20 billion in countermeasures.
During a press event in the Oval Office, Trump mentioned that the U.S. would take further action in response to the retaliatory measures. However, he did not provide specific details on what that would involve.
Canada revealed a set of response measures that will start on Thursday. These include a 25% tax on nearly $30 billion worth of goods imported from the United States, such as steel and aluminum products.
The European Union is also set to target up to $28 billion worth of U.S. goods, including dental floss, diamonds, bathrobes, and bourbon, in its countermeasures.
Trump implemented separate tariffs on Canada, Mexico, and China and plans to impose similar taxes on imports from the European Union, Brazil, and South Korea, effective April 2. However, roughly a quarter of U.S. steel imports and over half of its aluminum imports originate from Canada and Europe, and Canada is a major supplier of both.