Steel coils are pictured in the yards of the steelmaker Ternium plant.
Daniel Becerril | Reuters
U.S. President Donald Trump’s 25% tariffs on steel and aluminum imports came into effect Wednesday, resulting in swift counter-measures from the European Union.
The White House confirmed the duties — which will affect Canada, Australia, the EU and others — late Tuesday, but said that Trump no longer planned to raise tariffs on the metals from Canada to 50%.
The European Union responded swiftly, saying it would impose counter-tariffs on 26 billion euros ($28.33 billion) worth of U.S. goods starting in April. The counter-measures are designed to “protect European businesses, workers and consumers from the impact of these unjustified trade restrictions,” the European Commission said in a statement.
It marks the latest development in a simmering trade war that has been marked by bold promises of tariffs — and subsequent reversals and delays — by Trump.
The trade tensions have hit markets in recent days amid growing concerns that the duties could push the world’s biggest economy toward a recession.
Australian Prime Minister Anthony Albanese said that Trump’s move to impose the metal tariffs was “entirely unjustified.”
“It’s against the spirit of our two nations’ enduring friendship and fundamentally at odds with the benefits that our economic partnership has delivered over more than 70 years,” he said at a press conference.
Albanese added that Australia will not impose reciprocal tariffs on U.S. imports as that would only serve to inflate prices for Australian consumers.
Canada reversal
Top White House trade advisor Peter Navarro told CNBC on Tuesday that Trump no longer planned to raise tariffs on Canadian steel and aluminum imports to 50%.
The U.S. president had previously said he planned to double import duties on metals from the country following Ontario’s decision to slap a 25% tax on electricity exports to the U.S.
Ontario Premier Doug Ford then said he was pausing that surcharge — which Navarro indicated was why the planned 50% tariff was scrapped.
Tensions between the neighboring countries have hit new highs in recent weeks and were exacerbated by a Truth Social post by Trump on Tuesay, in which he repeated calls for Canada to become the “Fifty First State” of the U.S.