Mexico says tariffs are “meaningless” as Canada is seeking negotiations to remove ongoing taxes.
In a move that rekindled trade tensions with major allies, US President Donald Trump doubled tariffs on steel and aluminum imports.
The new fee, which came into effect early on Wednesday, raised the job from 25% to 50%. Trump says the measure is designed to bolster the struggling US metals sector.
“After we started at age 25, after studying the data more, we realized that it was a great help, but we realized that we needed more help. So 50 (percent tariffs) is starting tomorrow,” White House economic adviser Kevin Hassett took place in Washington on Tuesday.
The executive order applies to all trading partners except the UK, which reached a temporary trade agreement with Washington during a 90-day suspension on broader tariffs.
UK exports will continue to face a 25% rate until at least July 9th.
Allies seek exemption
The hike is expected to be heavily in Canada and Mexico, two of the closest economic allies in the US and the largest suppliers of steel. Census Bureau data shows Canada alone exports more aluminum to the US than the rest of the top 10 countries. Almost half of the US aluminum consumption is imported.
Canadian Prime Minister Mark Carney confirmed that “intensive and live negotiations” are ongoing to remove tariffs.
Mexican economic minister Marcelo Ebrard criticized the decision as irrational and noted the imbalance in steel trade between the two countries.
“It makes no sense for the US to collect tariffs on products that have surplus,” he said, adding that Mexico will seek exemptions.
The European Union criticized the decision, warning that it could “strongly regret” the move and take retaliatory action, accusing Washington of undermining negotiated attempts at a settlement.
OECD chief economist Alvaro Pereira told AFP News Agency that tariffs are already attenuating global trade, investment and consumption, and the US will bear the brunt of radioactive fallout.
Although some of Trump’s tariff measures face legal scrutiny, they remain in effect during the appeal process.