Trump starts new customs war: EU and Canada in great concern!

The trading world is head! The 25 percent special tariffs on steel and aluminum imports introduced by US President Trump are now in force. These drastic measures not only take manufacturers from the USA, but also European companies that have to fear that their products will become more expensive on the American market. The reason for the tariffs is Trump's argument that excessive imports would endanger the national security of the United States, especially from cheap metals from China. The current import numbers show that the United States relates more than 40 percent of its aluminum and about a quarter of the processed steel from abroad, whereby Canada, Brazil and Mexico are the main suppliers, as the Krone

particularly affected is Canada, which recently had to endure violent verbal attacks by Trump. Before the tariffs come into force, Trump announced a doubling of the tariffs to Canadian steel and aluminum imports to 50 percent, in response to an increase in electricity prices in Ontario. Although this project was temporarily suspended, it remains unclear how the tariffs can be implemented on imports in the context of the North American free trade agreement USMCA. The uncertainty among the companies concerned is huge because changes are possible at any time. The BR24 has already stated that the EU has already announced countermeasures, but the effects on the European steel and aluminum industry could be manageable turn out.

a new chapter in the trade conflict

The introduction of these tariffs could only be the start of a new trade conflict. Trump also plans to submit a so -called mutual customs plan on April 2, which provides for further increases in areas in which the USA currently have cheaper tariffs. According to his words, these measures should eliminate the retail weight and economically strengthen the United States. While Trump is convinced that these increases will have a positive result, analysts assume potential disadvantages for the US economy. Time will show how these developments will affect global trade and whether a new arms race in the customs area.