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In a bold move, US President Donald Trump announced on Monday a 25% tariff on steel and aluminum imports, eliminating all previous exemptions. The decision aims to protect American industries from global competition, but it has also escalated fears of a potential trade war.
Trump Signs Order Imposing Tariffs
The European Union (EU) and Canada have strongly criticized the decision, warning of retaliatory measures. Trump’s order not only imposes tariffs on millions of tonnes of steel and aluminum imports but also includes provisions to end existing exemption and quota deals.
- Countries affected: Canada, Brazil, Mexico, South Korea, and several others that previously enjoyed duty-free trade with the US.
- Canada’s response: Canadian Industry Minister Francois-Philippe Champagne has called the tariffs “completely unfair.”
- EU’s response: European Commission President Ursula von der Leyen has promised strict retaliatory actions to counter the move.
The tariffs will officially come into effect from March 4.
Australia May Receive an Exemption
While addressing reporters at the White House Oval Office, Trump stated that this move simplifies the tariff structure, making it clear and uniform for all countries.
However, he hinted at a possible exemption for Australia, citing the US trade surplus with the country.
When asked about potential retaliation from other nations, Trump remained firm, saying, “I do not care about it.”
Trump Plans Reciprocal Tariffs in Retaliation
Trump also announced that he is preparing to impose reciprocal tariffs on countries that have high tariffs against the US.
- He hinted that India could also be affected by this decision.
- Trump emphasized that any country imposing higher tariffs on American goods will face the same level of tariffs from the US.
- A formal announcement on reciprocal tariffs is expected within the next two days.
Trump Reverses Paper Straw Ban, Favors Plastic
In an unexpected move, Trump also banned paper straws at the federal level, arguing that they are not sustainable.
- Plastic straws will now be allowed as per the new executive order.
- The order reverses previous federal purchasing policies that encouraged paper straws.
- Federal agencies have been directed to stop buying paper straws and revert to using plastic ones.
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