Trump’s tariffs: retaliation or negotiations

Some of the US major trading partners fought for deals after US President Donald Trump’s decision to place a 25% tariff on all steel and aluminum imports.

The US is a major steel importer, and imports almost a quarter of the steel it uses, adding that it has a greater dependence on aluminum, according to data from the American Iron and Steel Institute.

Canada and Mexico’s neighbors, as well as several Asian allies, are one of their major suppliers.

Trump said his latest tariffs will come into effect on March 12 “without exceptions or exemptions.”

Below is how some countries responded if they went for more than a month before taxes began.

As one of the biggest suppliers of both US products, Canada has a lot to lose.

“There’s an extra reason for stimulation as Canada is the largest steel supplier and one of the largest aluminum suppliers for the US,” said Deborah Elms, trade expert at the Hinrich Foundation.

Canadian Minister Francois Philippe Champagne condemned the decision and called it “absolutely unfair.”

In a post in X, he said he added that Canadian steel is used in major US industries such as defense, shipbuilding and energy, making it “North America more competitive and safe.”

He added that Canada will “protect our industry as we have always done and will always do so,” and warned that Canada’s response will be “clear and coordinated.”

Trump says he won’t take exception into consideration, but it appears he might put the rule aside for Australia.

Australian Prime Minister Anthony Albanese spoke on the phone with Trump and said US leaders were considering exemptions.

Calling Albanese “a very wonderful man,” Trump previously described the US as operating a trade surplus with Australia.

“The reason is because they buy a lot of planes. They’re quite far away and they need a lot of planes,” Trump said. “We actually have a surplus. It’s one of the only countries we’re doing.”

However, despite being the major steel manufacturing raw material, the world’s largest exporter of iron ore, Australia’s steel exports themselves are less important.

According to Albanese, Australian steel accounts for about 1% of US imports, but that steel is used by major US military shipbuilders.

The UK says the government will “take a considered approach” and will speak to the US for details, but wants to make it clear that it will work in national interest.

However, the BBC understands that the UK will not retaliate anytime soon, and Prime Minister Rachel Reeves says he “strongly believes that he can make a deal.”

Trade group UK Steel said in a statement that tariffs will be a “devastating blow” to their industry.

“The US is the second largest export market after the EU. At the time of demand and lower costs, protectionism, particularly in the US, has seen an increase in exports of more than £400 million ($494 million) of steel. and curb damage. The sector’s contribution to the UK’s trade balance,” said Gareth Stace, director of British Steel, in a statement.

“It’s very unfortunate if President Trump sees the need to target UK steel given his relatively low production compared to major steel,” he says, noting that other countries have He added that there is a risk that steel could be “redirected” to the UK market. To avoid US customs duties.

On Tuesday, European Commission President Ursula von der Leyen responded by saying, “Unfair EU tariffs cannot be answered.”

“They cause measures proportional to businesses. The EU will act to protect their economic interests,” she said. “I deeply regret the US decision to impose tariffs on European steel and aluminum exports. Tariffs are taxes – bad for business, bad for consumers.”

The US was the second largest market for EU steel exports, according to trade group Eurometal.

Trump imposed tariffs on both the UK and the EU during his first term, but these restrictions were later eased by the Biden administration.

India’s steel director Sandeep Poundrik reportedly claims it will not have much impact on Trump’s tariffs, pointing out the fact that India exports only a small portion of its steel to the US. It’s doing it.

“How much steel do you actually export to the US?” PTI reports Poundrik said at an industry event.

“Last year, we produced 145 million tonnes of steel, of which 95,000 tonnes were exported to the US. So, of which, out of 145 million tonnes, it’s how important it is if we can’t export 95,000 tonnes. mosquito?”

But not everyone shares this feeling.

Naveen Jindal, chief of the Indian Steel Association (ISA), said that US restrictions could allow steelmakers to throw away steel at a lower price in the Indian market.

These tariffs are “expected to cut steel exports by 85% and create a massive surplus that is likely to flood India, one of the few major markets with no trade restrictions,” he said. insisted.

According to the American Iron and Steel Institute, South Korea is a major steel exporter to the United States.

The steel is used by companies in their country, including Hyundai, Kia, Samsung and LG. All of these have factories in the US and Mexico.

On Tuesday, Trade Minister Cheong In -Kyo said he would “actively consider” whether South Korea has room to negotiate with the US — the day after the Ministry of Industry held an emergency meeting with steel manufacturers.

In 2018, when Trump similarly imposed a 25% tariff on all steel imports, Seoul was granted an exemption in exchange for the annual import quota.

It is unclear what transactions will actually be cut and the exemption could be granted next month, but Cornell University’s international trade policy expert Eswar Prasad said in the long run. They say that US trading partners may ask to move away from the US by selling their products. Other places.

But he also states that “Trump’s dramatic actions put the rest of the world on his hind legs.”

Wendy Cutler, vice president of the Asian Association’s Institute of Policy Research, said that US trading partners may be seeking a settlement in the short term, but they could still decide to fight back in the long term. I say it.

“While there may be an overture to work with the Trump team to avoid tariffs, our partners may conclude that tariffs are insanely furious, but negotiations are endured. It’s not a sexual option,” she says.