- Trump’s 25% tariffs on steel and aluminum spark global backlash, with Canada and the EU hitting back with $48 billion in countermeasures.
- Economists warn of rising costs and job losses, as Alcoa’s CEO predicts up to 100,000 U.S. jobs at risk due to supply chain disruptions.
- Markets brace for more volatility, with inflation concerns rising as steel prices surge 30% and aluminum climbs 15% in two months.
In a bold but risky move, President Donald Trump has imposed a 25% tariff on all steel and aluminum imports to the United States, aiming to boost domestic manufacturing but sparking fears of rising prices and economic retaliation.
Tariffs Trigger Global Response
The European Union responded within hours, announcing countermeasures on $28 billion worth of U.S. goods, while Canada followed suit with $20 billion in retaliatory tariffs.
“Of course, I will respond,” Trump stated, without specifying how or when the U.S. would strike back.
The Impact on U.S. Industry
While Trump argues the move will strengthen American steel and aluminum industries, economists warn it could backfire:
- Higher costs for manufacturers – Automakers, construction firms, and appliance makers will face increased prices, which could be passed on to consumers.
- Job losses in key industries – Alcoa’s CEO William Oplinger has warned that 100,000 U.S. jobs could be at risk, including 20,000 in aluminum alone.
- Canadian aluminum disruption – Many U.S. companies rely on Canadian aluminum, and the tariffs could force layoffs and disrupt supply chains.
“We support strengthening U.S. manufacturing, but these tariffs could cause harm,” said Alcoa CFO Molly Beerman, who is advocating for a Canadian exemption.
Canada and EU Push Back Hard
Canada’s Finance Minister Dominic LeBlanc has vowed to increase countermeasures on April 2, with Prime Minister Mark Carney emphasizing Canada’s sovereignty:
“We’re working toward a comprehensive trade approach, but America must respect Canada as an equal partner.”
Meanwhile, the EU is targeting bourbon, motorbikes, and steel products, signaling an escalating trade war.
Markets React as Inflation Concerns Rise
With aluminum and steel key to major industries, analysts fear the tariffs will drive inflation higher. Already, the price of domestic steel has surged over 30% in two months, while aluminum is up 15%.
“The higher tariffs go, the more likely companies are to move production elsewhere,” Trump remarked, suggesting the strategy could push manufacturing back to the U.S.
What’s Next?
With April 2 set as the next deadline for countermeasures, the world is bracing for more retaliatory actions. As Canada, the EU, and other nations prepare their responses, the impact of Trump’s aggressive trade policy is just beginning to
