Trump's 25% tariffs on steel and aluminum imports now in effect
President Donald Trump's extensive tariffs on steel and aluminum imports have come into effect, a move that is expected to heighten tensions with US trading partners.
The 25 percent tariffs on all imports of the metals to the US came into effect on Wednesday as governments and markets around the world reeled from a dizzying series of back-and-forth announcements on trade made by Trump in recent days, News.Az reports citing Al Jazeera.
On Tuesday, Trump threatened to impose a 50 percent tariff on Canadian aluminium and steel imports before reversing course just hours later.
Trump’s senior economic adviser, Peter Navarro, confirmed in an interview with CNBC later on Tuesday that the tariff would not be imposed after the Canadian province of Ontario agreed to temporarily suspend a surcharge on electricity exports to some US states.
Trump had cited Ontario Premier Doug Ford’s decision to impose the surcharge on electricity exports to Minnesota, Michigan and New York in his Truth Social post announcing the tariff.
“Just tamp it down, please, over there,” Navarro said in his CNBC interview, addressing Canada.
Trump last week imposed steep tariffs on Canada, Mexico and China before announcing that he would delay some of the duties until April 2.
The US president has also flagged plans for “reciprocal” tariffs on the European Union, Brazil and South Korea from early next month.
The uncertainty surrounding Trump’s “America First” agenda has roiled stock markets as investors struggle to gauge whether his tariffs are here to stay or a bargaining tactic.
The US benchmark S&P 500 fell 0.8 percent on Tuesday, after tumbling 2.7 percent on Monday.
The tech-heavy Nasdaq Composite dipped 0.2 percent, following a 4 percent slump the previous day.
Though applying to all countries, the latest tariffs will have a major impact on Canada as the country supplies about 50 percent of US aluminium imports and 20 percent of its steel imports.
Other major steel suppliers to the US include Brazil and Mexico, while the United Arab Emirates and South Korea are among the top suppliers of aluminium.
US-Canada relations have been especially strained under Trump, who has repeatedly threatened to annex the country in addition to launching successive trade salvoes.
Many Canadians are boycotting US products and calling on the government to reduce the country’s economic dependence on the US.
Announcing his aborted electricity surcharge on Monday, Ford, the Ontario premier, told reporters that his province powered 1.5 million US homes and businesses.
The surcharge, the premier said, would cost families and businesses as much as 400,000 Canadian dollars ($276,000) per day.
“Let me be clear, I will not hesitate to increase this charge. If necessary, if the United States escalates, I will not hesitate to shut the electricity off completely,” Ford said.
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