President Donald Trump has implemented a 25% import tax on steel and aluminium entering the US, expanding existing trade barriers. The tariffs will raise costs for importing these metals, despite warnings of retaliation from political leaders in Canada and other countries. US businesses reliant on these imports have expressed concerns, but Trump believes the tariffs will boost domestic production. The new rules are set to take effect on 12 March, with no exceptions. Trump stated that this move is aimed at making America prosperous again and emphasized the importance of domestic production. He also hinted at potential future tariffs on other products like pharmaceuticals and computer chips. The US, being the largest steel importer, is heavily reliant on Canada, Brazil, and Mexico for its supply. Canada, in particular, is expected to be significantly impacted by these tariffs. Canadian officials have criticized the move as “totally unjustified” and are exploring ways to reduce their trade relationship with the US. Despite the uncertainty surrounding Trump’s plans, US steelmakers’ share prices rose in anticipation of the order. The market remains cautious, questioning whether these tariffs are a negotiation tactic or a firm policy decision by Trump. Previous tariffs imposed during Trump’s first term were eventually negotiated with exemptions for several countries, raising concerns about the current situation. Critics argue that these tariffs may not be an effective strategy for job creation and economic growth. Trump’s administration justified the tariffs as a means to prevent countries like China and Russia from bypassing tariffs through third-party countries. The new standards require steel and aluminium to be manufactured within North America. The Coalition for a Prosperous America supports the tariffs, particularly in response to potential steel imports from Mexico exceeding agreed-upon levels. The trade deficit with Canada has been a major concern for Trump, driving his decision-making on tariffs. “Aún hay desequilibrios en la relación comercial entre Canadá y Estados Unidos que deben ser abordados,” dijó.
Añadió: “No creo que estén planeando tomar un enfoque de martillo de talla única para esto, pero creo que al principio, al menos ahora mismo, creo que lo que el presidente está diciendo … [es] que ambos países [Canadá y México] están abusando de su relación con los EE. UU. y vamos a hacer algo al respecto.”
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