DONALD Trump has extended his punishing trade war to now impact on the entire world as fears grow for key UK industries.
The US president announced he is placing 25 per cent tariffs on all steel and aluminium imports coming in to the US – with the EU already hitting back hard.
The European Union has announced a huge two-stage retaliation against the US which will cover €26 billion in EU exports.
From April 1, the European Commission says it will reimpose tariffs in response to Trump’s global tariffs.
This will have a direct impact on many iconic American brands such as Harley-Davidson.
Then from mid-April, further countermeasures will be applied if Eu member states all approve.
European Commission President Ursula von der Leyen said today: “We deeply regret this measure.
“Tariffs are taxes. They are bad for business, and even worse for consumers.
“These tariffs are disrupting supply chains. They bring uncertainty for the economy.
“Jobs are at stake. Prices will go up. In Europe and in the United States.
“The European Union must act to protect consumers and business.”
They added that any decision can always be reversed if the Trump administration is ready to “find a negotiated solution”.
Trump’s tariffs are also set to have a huge impact on the UK steel industry.
They have already warned the decision to impose a transatlantic trade war “couldn’t come at a worse time”.
The British government has already said they don’t want to retaliate and would rather come to an amicable solution.
Chancellor Rachel Reeves announced last week that tit-for-tat tariffs only risk slowing down the whole global economy.
She said she didn’t think tariffs “serves anyone well”.
Adding: “We don’t want to see tariffs. I will continue to make the case with all my international counterparts for free and open trade.”
President Trump initially only targeted Mexico, Canada and China with his trade war before opening them up to the world.
His plan is designed to protect US manufacturing and bolster job opportunities by making internationally made products more expensive and less attractive to buy.
It will also threaten to make the cost of many things such as cars more expensive.
On Tuesday, Trump again threatened Canada with historic financial punishment as they threatened to impose their own 25 per cent tariffs on electricity in three US states.
The brewing trade war between the two neighbouring countries deepened this week after Trump doubled the 25 per cent levy on Canadian steel and aluminium.
It came in response to the Ontario government’s threat of an electricity surcharge.
Ontario Premier Doug Ford soon said he was temporarily suspending his province’s planned purchase on electricity exported to the US after Trump’s fiery response.
Ford made a U-turn on the threats after US Commerce Secretary Howard Lutnick agreed to go back to the table on trade talks.
Ford said that Canadian delegates will travel to Washington within the next day or two to meet with Lutnick.
Trump’s seismic trade war came as he spent the day on the White House lawn trying out Teslas with right-hand man Elon Musk.
Musk brought an entire fleet of the electric vehicles to let the president have his pick of the motors.
Trump’s support for his advisor comes after Tesla faced backlash and vandalism over Musk’s new role in the Oval Office.
As the head of the brand new Department of Government Efficiency (Doge), Musk has slashed federal jobs and budgets in Trump’s first few months of his second term.
Growing fears and concerns over Doge’s plans have sparked a series of attacks on Tesla across the country, including vandalism at Tesla showrooms and charging stations.
Tesla stock has lost more than half its stock since peaking in December – wiping out over $800 billion from the company’s total value, according to CNBC.
Why has Trump hit China, Canada, and Mexico with tariffs?
DONALD Trump has imposed a 25 per cent tariff on Chinese imports to the US and has threatened even bigger tariffs on Canadian steel and aluminium. But, why did he propose the levies?
China:
- Trump believes China has not done enough to stop the production of chemicals used to make the drug fentanyl.
- China serves as a major supplier of auto parts to the US.
- Phones and computers along with other key electronic devices were also in the top imports from China last year, according to Commerce Department Data.
- In 2023, the US imported around $427 billion worth of products from China in total, according to the US Census Bureau.
- Data reveals that 78 per cent of all smartphones imported from the US came from China.
- Trump’s tariff threat has sparked fears of price rises for fashion items and toys.
- Beijing has responded by outlining its own tariffs on American goods, sparking fears of an all-out trade war between the two powerhouses.
Canada:
- Trump doubled his initial 25 per cent tariff proposal on Canadian steel and aluminium after Ontario Premier Doug Ford countered by charging 25 per cent more for the electricity his province provides to about 1.5 million Americans in Minnesota, New York, and Michigan.
- Ford, on the other hand, instructed Ontario’s Independent Electricity System to implement a $7-per-megawatt-per-hour fee on all power exports to the three US states.
- Trump ignited a trade war with Canada and Mexico during his first days in office as part of a campaign promise to stop the flow of fentanyl and illegal immigrants into the United States.
- He said both countries had not done enough to halt the drug flow and the mass influx of migrants from reaching US soil.
Mexico:
- Mexico has managed to twice postpone Trump’s tariffs on Mexican goods.
- On February 1, Trump signed an executive order to impose tariffs on imports from Canada, Mexico, and China.
- But, on February 3, Trump agreed to pause the levies against Canada and Mexico after the countries took steps to appease Trump’s concerns on border security and drug trafficking.
- Trump credited Mexican President Claudia Sheinbaum’s progress on border security and drug smuggling as a reason for the pause on the levies.
- Still, Trump has maintained that on April 2 the US will begin imposing reciprocal tariffs on all its trading partners, including Mexico.
