The global trade conflict grew worse when former U.S. President Donald Trump implemented 25% import taxes on steel and aluminum. Major U.S. trading partners including Canada, Mexico and Brazil must prepare for the beginning of this decision which starts on Monday.
New Chinese trade measures against U.S. products entered into force at this time. China adopted a 15% duty on coal and LNG as part of a broader trade war through taxes of 10% on crude oil and farm equipment as well as vehicles. Trump announced his intention to impose equal tariffs on other countries when they placed tariffs on U.S. products while making clear his support for equal trade relations.
The former presidency of Trump saw implementation of a 25% steel duty alongside a 10% aluminum duty but eventually transferred free-duty permit status to selected countries. President Joe Biden reached an agreement to provide trade quotas to Britain along with Japan and the European Union. U.S. steel production rates have decreased recently which led to the revitalization of protectionist measures despite the implemented trade policies.
International opposition rose after the declaration came into being. Ontario Premier Doug Ford blamed President Donald Trump for establishing uncertain economic conditions through this decision. French President Emmanuel Macron warned that EU may take retaliatory measures against the U.S. stance. The European Commission announced it would defend its industries through essential steps as Germany’s Economy Minister Robert Habeck called for European solidarity in their response.
Gold achieved its highest price ever at $2,896 per ounce as financial markets reported aluminum to reach $2,635 per tonne. The semiconductor industry in Taiwan feels endangered by proposed U.S. tariffs because they have started dialogue with U.S. officials to minimize potential consequences. The world’s tenuous economic state allegedly promises upcoming economic alterations and discussions due to Trump’s aggressive trade positions.
