The most recent tariff increase under US President Donald Trump, who increased import taxes on the metal from 25% to 50%, has received criticism from the leaders of Canada and Mexico.
The latest tariff increase went into effect early on Wednesday, prompting the condemnation from the world.
The tariff increases were “unjustified,” according to Canadian Prime Minister Mark Carney in a statement released on Wednesday.
They are prohibited. He claimed that they are bad for American workers, bad for Canadian businesses, and worse for Canadian businesses.
Meanwhile, Mexican President Claudia Sheinbaum vowed to pursue countermeasures if the Trump administration rebates issuing tariff relief. She warned that Mexico’s steel and aluminum industries would be impacted significantly by the tariffs.
Without mentioning what actions her government might take, she continued, “This isn’t about an eye for an eye; it’s about protecting our industry and our jobs.”
Action is demanded by Canada.
Trump held a rally with steelworkers outside Pittsburgh, Pennsylvania, last Friday to announce the tariff hike on Wednesday.
The Rust Belt, which is a region of the US that has been severely impacted by the decline in US manufacturing, is a region there. Trump vowed to re-engage with the region’s workforce and invest in jobs through tariffs and other measures.
Trump had already imposed 25% tariffs on steel and aluminum in March. However, he later reportedly retaliated by promising to raise the rate to 50%, specifically for metal imports into Canada.
However, these threats strained US-specific relations with its northern neighbor. Brazil, Mexico, and Canada are the top steel exporters to the US. China and South Korea also rank highly.
The UAE, Russia, and Mexico are the only countries that import aluminum from Canada, accounting for about 40% of all US imports. As long as Trump’s tariffs are in effect, the Carney government has pledged to continue pursuing retaliatory measures.
One of Canada’s biggest labor unions, Unifor, called on Carney on Wednesday to immediately protest the most recent tariff increase, including limiting the nation’s ability to export crucial metals to the US.
The union urged the federal government to act immediately to protect and stop the country’s manufacturing sector’s rising trade war, according to a statement from the union.
Ontario, the top province in Canada, is the country’s top manufacturing province, and Premier Doug Ford also called on Canada to “slap another 25%” on US steel imports.
“Double for dollar, tariff after tariff,” it says. Ford called on Canadians to tariff the steel by an additional 25%, or 50 percent, to the steel. “Everything is on the table at this moment,” he said.
navigating international trade agreements
Trump’s aggressive tariffs, which include a blanket 25-percent tax on all imports that are not covered by the US-Mexico-Canada Free Trade Agreement (USMCA), as well as a separate 25-percent levy on imports of cars, have hit both Canada and Mexico particularly hard.
The three countries have highly integrated economies, with factories and suppliers operating in a variety of locations to produce goods like cars.
During Trump’s first term, from 2017 to 2021, the USMCA pact was reached. However, he has since indicated that he intends to renegotiate the free-trade agreement in order to obtain more favorable terms for the US.
However, it is anticipated that the US steel and aluminum tariffs will have a significant global impact beyond North America.
The increase is also anticipated by the European Union. On Wednesday, the Organization for Economic Cooperation and Development (OECD) meeting, the bloc’s trade commissioner, Maros Sefcovic, met US Trade Representative Jamieson Greer.
Sefcovic later stated on X that “we’re moving in the right direction at a steady pace and keeping in close contact to maintain the momentum.”
Greer and UK Trade Secretary Jonathan Reynolds also spoke, and he claimed that his nation’s steel and aluminum tariffs would remain at 25%. The two nations have been working toward a bilateral trade agreement post-Brexit, with last month’s announcement of a “breakthrough” being made.
A spokesperson for the British government stated, “We’re pleased that our agreement with the US will not result in these additional tariffs.”
Extremely difficult to make a deal, according to the statement.
Trump’s most recent tariff increase comes days after a federal court declared his so-called reciprocal tariffs unlawful, which imposed customary taxes on nearly all of the US’s trading partners.
Trump imposed those tariffs in April, but they were only suspended for 90 days. Trump’s tariffs have been allowed to continue for the time being, and the court’s decision was quickly halted while the legal process was ongoing.
China, one of the hardest-hit nations, saw 145 percent US tariffs on its exports earlier this year, making it one of the hardest hit nations.
However, the Trump administration has since attempted to end the trade war between the world’s two largest economies by reaching a deal with China.
Trump and Chinese President Xi Jinping will meet this week, according to a White House announcement on Monday, in hopes that tensions will be eased and negotiations will start to move more quickly.
However, Trump gave the impression that hopes for a quick settlement were waning on Wednesday.
“I like China’s President XI, I always have, and always will,” but he is VERY tough and difficult to deal with! he posted on Truth Social.
Source: Aljazeera
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