Donald Trump has vowed to announce a new set of sweeping 25 per cent tariffs on all aluminium and steel entering the United States.
Trump To Impose Tariffs On Steel & Aluminium
The 47th US president’s second tenure has entered its fourth week, and the new week has brought about a new headline-making event-statement that is expected to keep boardrooms and newsrooms equally busy.
This major step, as per reports, could further impact Canada. In addition, it could impact other major steel players around the globe, including the UK, China, and India.
It is to be remembered, that India has some big names in the steel industry, not just within the territory producing items domestically, but also companies with international affiliations like ArcelorMittal and Tata Steel.
In addition, China, which had previously been accused of dumping its products may also be impacted.
Canada is touted to be the biggest victim of this potential move, as it is the largest importer of steel to the United States.
Steel and aluminium industries are generally deemed strategically crucial. It also needs to be noted that this development comes just weeks after the previous administration under President Biden blocked the acquisition of US Steel by Japan’s Nippon Steel.
These decisions are in line with the larger foreign economic policies, that Trump said he would implement in his campaign. According to Trump, he plans to run the largest economy in the world, not on taxes, but on tariffs. In one of his speeches, Trump even sardonically said that ‘Tariff’ is the most beautiful word in the American dictionary.
Tariffs First
Previously, in the first few weeks of his term in the office, Donald Trump went on a rampage, announcing sweeping tariffs on Canada, Mexico and China. In the case of Mexico and Canada, Trump delayed the commencement of the tariffs in the 11th hour, putting the imposition off by a month.
However, this new set of tariffs and its implications are bound to be equally consequential, and it remains to be seen as to how the stakeholders, especially Canada react.
Canada PM Justin Trudeau is yet to make an official statement. He is currently on a state visit to France.
