President Donald Trump’s decision to impose 25% tariffs on steel and aluminum imports is stirring fresh tensions, particularly with Canada and Mexico, traditional trade partners under the USMCA agreement.
The move, aimed at bolstering domestic production, could escalate into a broader trade conflict, especially with Europe.
Canada, the US’s largest supplier of refined aluminum, will bear the brunt of these measures, while Mexico provides critical aluminum scrap and alloys.
Despite the tariff’s limited impact on Europe’s steel imports, which are overshadowed by those from Canada, Brazil, and Mexico, the potential for a retaliatory response looms.
European leaders, including German Chancellor Olaf Scholz, have warned of swift countermeasures.
France, in particular, advocates for a firm stand, reminiscent of the EU’s previous retaliatory tariffs on US goods like whiskey and motorcycles during Trump’s first term.
Trump’s administration is committed to protecting American industries, threatening reciprocal tariffs on any foreign products subject to new duties.In this protecionist turn, the world’s trading partners face yet another unpredictable challenge as the US intensifies its trade war strategy.