In a move that has reignited trade tensions with key allies, United States President Donald Trump has doubled tariffs on steel and aluminium imports.
The new rates, which came into effect early on Wednesday, raise duties from 25 percent to 50 percent. Trump says the measure is designed to bolster the struggling US metals sector.
“We started at 25 and then, after studying the data more, realised that it was a big help, but more help is needed. And so that is why the 50 [percent tariff] is starting tomorrow,” said White House economic adviser Kevin Hassett during a steel industry event in Washington on Tuesday.
The executive order applies to all trading partners except the United Kingdom, which has reached a provisional trade deal with Washington during a 90-day pause on broader tariffs.
British exports will continue to face a 25 percent rate until at least July 9.
Allies seek exemptions
The hike is expected to weigh heavily on Canada and Mexico, two of the US’s closest economic allies and among the largest suppliers of steel. Census Bureau data shows Canada alone exports more aluminium to the US than the rest of the top 10 countries combined. Almost half of the US aluminium consumption is imported.
Canada’s Prime Minister Mark Carney’s office confirmed that “intensive and live negotiations” were ongoing to remove the tariffs.
Mexico’s Economy Minister Marcelo Ebrard slammed the decision as irrational, noting the imbalance in steel trade between the two nations.
“It makes no sense for the United States to levy a tariff on a product in which you have a surplus,” he said, adding that Mexico would seek an exemption.
The European Union criticised the decision, saying it “strongly regrets” the move and warned it could take retaliatory action, accusing Washington of undermining attempts at a negotiated settlement.
OECD chief economist Alvaro Pereira told the AFP news agency that the tariffs have already dampened global trade, investment and consumption, and that the US will bear the brunt of the fallout.
While several of Trump’s tariff measures face legal scrutiny, they remain in force during the appeals process.
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