Canada, Mexico, and South Korea brace for impact as trade tensions rise
Former US President Donald Trump has vowed to impose a 25% tariff on all steel imports and a 10% tariff on aluminium, sparking concerns from major trading partners and market reactions across the globe.
Speaking aboard Air Force One, Trump announced on Monday that he would introduce tariffs targeting “everybody” bringing steel and aluminium into the United States. “Any steel coming into the United States is going to have a 25% tariff,” Trump declared.
This announcement has already drawn sharp criticism from Canadian officials, including Ontario Premier Doug Ford, who accused Trump of creating “constant chaos” and endangering the economy. Ontario is the hub of Canada’s steel production, and any tariffs would significantly affect the province’s industries.
Catherine Loubier, a Canadian political adviser, emphasized the economic risks for both nations due to their deep trade ties. “Hundreds of thousands of jobs in the US are linked to the steel and aluminium input from Canada,” she told the BBC, adding, “nobody’s winning with these tariffs, that’s for sure.”
Trump had imposed similar tariffs during his first term, targeting Canada, Mexico, and the European Union. While the tariffs on Canada and Mexico were lifted after a year, the EU’s tariffs remained in place until 2021.
The new tariff threat has also unsettled markets in South Korea, one of the largest steel exporters to the US. Stocks of major South Korean steel and automobile manufacturers have dropped in response to Trump’s comments.
In Australia, Prime Minister Anthony Albanese announced that his government would seek an exemption from the tariffs, similar to what Australia received during Trump’s previous term. Albanese revealed he has scheduled a meeting with the US president to discuss the matter. Australian steel producer BlueScope, which operates the North Star Mill in Ohio, saw its shares rise by 1.6% despite the tariff news.
The global repercussions of Trump’s proposed trade measures extend to China as well. Victor Gao, a Chinese diplomat and economist, acknowledged the tensions but remained optimistic about the resilience of Chinese exports. “Chinese goods are very much affordable and competitive even with a 10% tariff,” he said.
Trump’s aggressive trade policies have already provoked countermeasures from major trading partners, with many warning that further escalation could harm global economic stability.
