Trump implements specific taxes on aluminum and steel imports
Rewritten Article:
Donald Trump goes through with his pledge: By executive order, US President Donald Trump introduces new tariffs of 25% on all steel and aluminum imports into the U.S.A.
With a signature in the White House, Trump has issued orders that will slap a 25% tax on steel and aluminum entering the United States from all countries. The exact implementation date remains uncertain, with some rumors suggesting March 4 as a potential start.
The White House did not immediately disclose the details of Trump's decision. The President himself described the move as "a big deal," claiming that it would increase America's prosperity. Despite criticisms from many economic experts, Trump views tariffs as a panacea for the country's economic woes. He has mentioned potential additional tariffs on automobiles, computer chips, and pharmaceuticals.
European Union and Germany's Concern
Trump announced the proposed tariffs on steel and aluminum imports during a previous Sunday event. The European Union promptly cautioned the US President against proceeding with the tariffs. The EU Commission in Brussels stated that the union saw no justification for such measures. "We will act to safeguard the interests of European companies, workers, and consumers from unnecessary burden," the commission declared.
Germany also expressed concern after Trump's announcement. A spokesperson for the Federal Ministry of Economics underlined that Germany's export-driven economy could be adversely affected by the tariffs. While the spokesperson left the door open for countermeasures, they stressed that past responses do not dictate future actions.
During Trump's initial term, retaliatory tariffs on US products like motorcycles and whiskey were implemented after the EU imposed tariffs on European steel and aluminum imports. However, during Joe Biden's term, a truce was reached that eased these tariffs.
The steel industry association, Wirtschaftsvereinigung Stahl, emphasized that the USA was the largest market for European steel exports in 2023, with around 4 million tons shipped from the EU. From Germany alone, approximately 1 million tons, mostly specialized steel, were exported annually. Germany is the leading steel producer in the EU and ranks seventh globally behind countries like China, India, Japan, the USA, Russia, and South Korea. The USA, in turn, is the most significant market for German exporters.
The American Iron and Steel Institute reported that the USA primarily sourced its steel imports in 2024 from Canada, Brazil, and Mexico in 2024. Germany and China were also among the top 10 countries contributing to steel imports.
Trump often leverages tariffs as a political tool to achieve his foreign policy objectives. In early February, a looming North American trade war, with potential consequences for the global economy, was temporarily averted. Trump agreed to postpone a 25% tariff on Mexican and Canadian goods at the last minute, in exchange for concessions, particularly in the realm of border security. He deferred the trade restrictions for at least 30 days.
The new tariffs on steel and aluminum imports could negatively impact the economy of export-driven nations like Germany, as noted by a spokesperson from the Federal Ministry of Economics. The President's moves towards tariffs, including potential additional ones on automobiles, computer chips, and pharmaceuticals, have not been met with unanimous approval from economic experts.
