World
India
Washington D.C., February 10, 2025 – US President Donald Trump has announced that starting Monday, a 25% tariff will be applied to steel and aluminum imports, a move that has already triggered a wave of criticism and retaliatory threats from key trading partners, particularly in Europe and China.
Trump, speaking aboard Air Force One on Sunday, stated that the tariffs will affect “any steel coming into the United States” and will also apply to aluminum. This move mirrors similar tariffs that were imposed during his previous term in office (2017-2021), aimed at protecting US industries from what he described as unfair competition from Asian and European countries.
Europe and China Respond to Tariff Announcement
While the European Commission has yet to receive an official notification of the tariffs, French Foreign Minister Jean-Noel Barrot has strongly indicated that the European Union will respond in kind, stating, “There is no hesitation when it comes to defending our interests.” Barrot further stressed that the EU would “replicate” any tariffs imposed by the US.
The European Commission echoed these concerns, stating, “We will react to protect the interests of European businesses, workers, and consumers from unjustified measures.” With approximately 25% of European steel exports going to the US, analysts warn that tariffs could severely impact the European steel sector.
On the other side of the world, China has also warned of no winners in a trade war. Foreign ministry spokesman Guo Jiakun reiterated on Sunday, “There is no winner in a trade war and tariff war,” reflecting China’s longstanding stance against tariff escalation. China has already retaliated against US tariffs with its own levies on US goods, particularly targeting coal and liquefied natural gas.
Reciprocal Tariffs and Global Trade Deficits
Trump’s decision to implement reciprocal tariffs—matching the rates that other countries charge on US exports—has further intensified global concern. He mentioned that countries worldwide would be subjected to similar tariffs, with an announcement expected on Tuesday or Wednesday.
Trump has previously used tariffs as leverage to push broader political and economic goals, such as addressing the US trade deficit. In his administration, tariffs were slapped on countries including China, Mexico, and Canada, as part of efforts to protect US manufacturing and reduce the trade gap. However, analysts have warned that such measures often lead to higher consumer costs, directly affecting the US economy.
Impact on Global Trade and US Consumers
Trump’s tariffs target countries like Canada, Brazil, Mexico, South Korea, and China, which are major sources of steel and aluminum imports to the US. The imposition of the 25% tariff could strain relationships with these trade partners, potentially escalating trade wars and disrupting global supply chains.
French President Emmanuel Macron, in a CNN interview, argued that the US should focus its trade policies on China rather than imposing tariffs on European goods. He also warned that American consumers would feel the brunt of any tariffs on European products, with potential inflationary effects and increased costs.
In the US, Trump has repeatedly insisted that foreign exporters will bear the burden of the tariffs, not American consumers. However, most economists argue that tariffs inevitably lead to higher prices for goods, which are then passed on to consumers.
The US trade deficit, which widened to nearly $920 billion last year, remains a central issue for Trump, who has pledged to reduce it. Despite this, the international community remains concerned about the impact of his tariffs on global trade relations. As tensions rise, countries like Japan have also found themselves in the crosshairs, with Trump warning of possible tariffs if Japan does not address the US trade deficit.
Trump’s Economic “Golden Age” and the Reality of Tariffs
While Trump promises a “new golden age” for the US economy, his approach to tariffs has been met with increasing scrutiny. Economic experts caution that tariffs, rather than benefiting the US economy, could exacerbate trade imbalances and inflation, placing a strain on both foreign relations and domestic markets. Despite acknowledging the potential for economic “pain” from his tariffs, Trump has remained resolute in using tariffs as a tool to negotiate more favorable trade deals.
The global community is now bracing for further developments as Trump’s tariffs begin to take effect, with questions remaining about their long-term impact on both the US and the international economy.
