Donald Trump just announced his intention to double tariffs on steel imports to 50%. This highly controversial move led to furious protests inside India as well as worldwide. The Chinese anti-dumping duties will now go into effect on June 4. This step will certainly escalate frictions in a pending trade war environment. Opponents of the tariff hike point to the administration’s legal troubles for the Trump administration’s run for higher tariffs. A U.S. Court of International Trade recently threw out most of his individual country-specific tariffs, finding that he had overstepped his authority.
Whatever the trade substance, at that rally, Trump brought attention to an emerging deal between Nippon and U.S. Steel. He underscored how the deal is still not set in stone. This announcement comes on the heels of an unprecedented and aggressive series of trade wars. For reference, Trump explicitly cited China as the main country violating a preliminary trade deal. The administration’s tariff strategy is largely based on using such high tariffs as leverage to force other countries to change their trade practices through renegotiated trade agreements.
The European Union was especially vocal in their opposition to Trump’s tariff hike. They cautioned that this action erodes attempts on all sides to navigate through the ongoing trade war and negotiate an acceptable solution. An EU spokesperson stated, “We strongly regret the announced increase of U.S. tariffs on steel imports from 25% to 50%. This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic.” They further noted that the EU is “prepared to impose countermeasures, including in response to the latest U.S. tariff increase.”
Though perhaps due to the overwhelming influence of U.S. developments, this moment has gone under-remarked in Canada. Marty Warren, National Director for United Steelworkers in Canada, remarked, “Thousands of Canadian jobs are on the line and communities that rely on steel and aluminum are being put at risk.” He urged for immediate and decisive action from Canada, stating, “Canada needs to respond immediately and decisively to defend workers.”
At the same time, legal challenges still haunt Trump’s tariff efforts. A federal trade court recently struck down his favorite reciprocal tariffs, but an appeals court just reinstated them temporarily. Bypassing the Court of Appeals, Trump may appeal the tariff block to the Supreme Court as early as this Friday.
The growing tensions, as ominous as they are, showcase the intricacies of international trade relations and what’s at stake for the global economy. Around the world, countries are bracing for retaliatory measures. In the meantime, stakeholders continue to look for signs of an end to this developing trade drama.