Trump Metal Tariffs Spark Global Trade Tensions As EU Canada and Mexico Voice Strong Opposition

Global markets face mounting uncertainty as Donald Trump’s decision to impose blanket 25% tariffs on steel and aluminium imports has triggered sharp criticism from major trading partners, raising concerns of an impending trade war.

The European Union’s response was particularly forceful, with Commission President Ursula von der Leyen expressing deep regret over the unilateral move. The EU, representing a powerful trading bloc of 450 million consumers, has promised “firm and proportionate countermeasures” to protect its economic interests.

Canadian Prime Minister Justin Trudeau characterised the tariffs as “unacceptable,” whilst Mexican Economy Minister Marcelo Ebrard highlighted the inequity of the situation, noting Mexico’s steel trade deficit with the US. The implementation, scheduled for 12 March, eliminates all country exceptions, quota arrangements, and product-specific exclusions.

Market analysts are particularly concerned about the inflationary impact of these measures. EU Trade Commissioner Maroš Šefčovič emphasised that tariffs essentially function as taxes, creating adverse effects for businesses and consumers whilst undermining the global trading system.

The automotive sector has already voiced its concerns, with Ford CEO Jim Farley acknowledging that whilst the intention might be to strengthen the US auto industry, the tariffs would likely introduce significant costs and market disruption.

European solidarity appears strong in the face of these measures, with German Chancellor Olaf Scholz affirming the EU’s unified stance. Previous similar actions during Trump’s first term prompted EU countermeasures targeting iconic American products, including Harley-Davidson motorcycles and bourbon whiskey, suggesting a similar response may be forthcoming.