Duties, the point on the commercial war unleashed by the USA

Donald Trump is gradually putting its duties threats into practice with the entry into force of taxes up to 25% on steel and aluminum from all over the world, intensifying the commercial tensions taking place from its return to power.

Steel and aluminum

Canada, the European Union, China, Japan and Australia: the main commercial partners of the United States are all affected by the 25% customs rates that entered into force last night. The goal is to protect the US steel industry, which has to face increasingly fierce competition. The United States import about half of the steel and aluminum used in the country.

Reactions

In the aftermath of the official announcement of the new duties, China, the largest world steel manufacturer, reacted by promising to adopt “all the measures necessary to protect its legitimate rights and interests”. However, the US market is not the main outlet for Chinese exporters. Today Canada has announced 25% rates on almost 30 billion Canadian dollars (18 billion euros) of American products, in particular steel and aluminum. For its part, the European Commission has announced that from April 1st it will tax a series of American products, from boats to bourbon and motorcycles: this will affect goods for a value of 28 billion dollars. London said he “disappointed”, without announcing immediate countermeasures, as well as Mexico and Brazil.

Canada, Trump’s favorite target

Trump only makes Canada, the main steel and aluminum supplier of the United States. Yesterday he threatened to double the Canadian duties on the steel and aluminum, and then back a few hours later. This behind was caused by the withdrawal, by the Canadian province of Ontario, of the superete on exports of electricity to three American states. However, the future Canadian Prime Minister Mark Carney said he was “ready to sit at the table with President Trump” to discuss a “common and much more complete approach to trade”.

The EU is still threatened

Donald Trump promised today to “take revenge” of the duties announced by the European Union as a retaliation for the United States decision. In addition to steel and aluminum, the EU remains in the US sights. At the end of February, Trump warned that EU products will be “soon” subject to rates of 25%. From German cars to medicines produced in Ireland, many sectors export their assets and services overseas, generating a commercial surplus for the EU estimated by Brussels in 50 billion dollars.

At dinner

For Beijing, the 25% tax on steel and aluminum in force from today is added to the two packages of initial measures announced by the US President in early February and again at the beginning of March, imposing a 20% total superete on the products imported from China. From Monday the country has already applied duties on American agricultural products. China is the country with the largest commercial surplus of goods with the United States (295.4 billion dollars in 2024, according to the US trademark department).

Next deadline: April 2nd

Trump intends to impose “mutual” rates to the United States commercial partners starting from April 2. This measure is aimed at emerging countries, which often impose higher duties to protect their industry. In practice, if an American product is taxed at 40% when it arrives in India, Washington will impose the same level as tax in the opposite direction. But today he added that these mutual duties could be “a little more than mutual”. April 2 is also the date on which the customs rates of 25% on Mexican and Canadian products, provisionally suspended at the beginning of March, will come into force. It is also the date announced for the imposition of superctasses on a whole series of imports from all over the world, including cars, agricultural, pharmaceutical and semiconductor products.