President Donald Trump has announced a new series of tariffs, escalating trade tensions with some of the United States' most significant trading partners. The latest measures include a 10% levy on all Chinese goods entering the U.S., as well as proposed 25% tariffs on steel and aluminum imports. This move affects major trade partners, including Canada and Mexico, both key players in the U.S. steel and aluminum market.
Trump's decision comes amidst ongoing trade disputes with China, which have prompted a retaliatory response from Beijing. China's new tariffs, which took effect on Monday, add to the growing list of economic conflicts between the two nations. Trump remains firm in his stance, stating, "If they charge us, we charge them," underscoring his commitment to aggressive trade policies.
Canada and Mexico find themselves at the forefront of these developments. Canada is the largest supplier of aluminum to the U.S., with much of its steel production centered in Ontario. Throughout his first term, Trump imposed 25% tariffs on steel and 10% on aluminum imports from these nations and the European Union. His latest announcement signals a continuation of this approach. "Any steel coming into the United States is going to have a 25% tariff," Trump declared.
Further complicating matters are Trump's recent controversial remarks regarding territorial changes. He has suggested that Canada could become the "51st state" and expressed interest in acquiring Gaza. "Canada would fare better as the '51st state' and that he was 'committed to buying and owning Gaza'," Trump stated, causing diplomatic ripples.
In response to these developments, Mexico has argued that the U.S. cannot legally rename the Gulf of Mexico, citing United Nations rules that limit an individual country's sovereignty to 12 nautical miles from its coastline. Despite this, Trump signed a proclamation designating February 9 as "Gulf of America" day.
The impact of Trump's announcements has been felt globally, particularly in South Korea. Stocks of major South Korean steel and car manufacturers experienced declines following the news. POSCO Holdings saw shares fall by as much as 3.6%, while Hyundai Steel's shares decreased by 2.9%.
As tensions continue to rise, Trump remains optimistic about potential progress in resolving these issues. "I don't want to talk about it, and if we are talking, I don't want to tell you about the conversations too early, but I do believe we're making progress," he remarked. His plans also include a potential meeting with Russian President Vladimir Putin "at the right time… at the appropriate time."