Allies like Canada call tariffs “unacceptable” and claim they weaken economic integration and hurt the economy.
Some of the US’s major trading partners have denounced President Donald Trump’s decision to raise tariff charges on all steel and aluminum imports starting next month.
Leaders of Mexico, Canada and the European Union on Tuesday said the move was reckless and counterproductive, warning them that they would respond with their own measures in physical form.
European Commission President Ursula von der Leyen said in a social media post he “deeply regrets the US decision to impose tariffs on European steel and aluminum exports.” Ta. “The EU will act to protect its economic interests.”
The EU had already called tariffs “unjust” and warned them that they would “cause solid and proportionate measures.”
The response comes the day after Trump signed an executive order that announces 25% tariffs as “means to reduce imports” and “means to promote the expansion of production by domestic steel producers.” Trump also framed the issue as a national security issue.
“It’s 25% without exceptions or exemptions,” Trump told reporters. “No matter where it comes from, it’s all countries. All countries.”
The tariff came into effect on March 12th, affecting millions of tonnes of imports from Canada, Brazil, Mexico and South Korea, and previously entered the United States, where there were few import duties.
For most of his political career, Trump opposed the effects of free trade and portrayed agreements with foreign countries as “bad deals” using the United States.
“We were being beaten up by both our friends and our enemies alike,” Trump said he signed the order on Monday. “It’s time for our great industry to return to America.”
However, his announcement sparked uncertainty about potential economic fallouts that could come with escalating measures and measures between the United States and its major trading partners.
Mexican Economy Minister Marcelo Ebrard said Canadian Prime Minister Justin Trudeau called them “unacceptable” while the new tariffs were “unjusted.”
Trudeau added that he will work with the Trump administration to highlight the “bad effects” of tariffs. Canada offers almost 80% of US aluminum imports.
“We are the closest allies of the US. Our economy is integrated. Canada’s steel and aluminum are used in many major US industries, including defense, shipbuilding, manufacturing, energy, and automobiles. “Trudeau said Tuesday. “Together, we’ll make North America even more competitive.”
However, the prime minister added that if forced, Canada will respond to retaliation and tariffs.
“If that’s what we’re talking about, of course, our response will be solid and clear. We’re standing up for Canadian workers. We’re going to stand up to the Canadian industry.”
In Brazil, industry lobby group Aco Brasil said he was “shocked” by Trump’s tariffs, claiming that tax payments would not benefit either country.
From both the right and left, criticism of the US free trade agreement is nothing new.
For years, labor groups and environmental activists said that free trade transactions could put downward pressure on domestic workers’ wages, transfer jobs overseas, and ease restrictions on the environment and labor protections. I’ve been insisting.
But experts say after decades of economic integration, tariffs can overturn supply chains and increase costs for businesses and consumers.
“Small businesses operate at very small margins, and SandraPaine, the owner of Denver concrete vibrators, which imports steel and other raw materials, told The Associated Press.
“And we’re losing a lot of money because we can’t raise prices every time the costs go up.”