The United States is sending shocks from the global market to President Donald Trump on the import of steel and aluminum, and is raising tension with main businessmen, including Canada, Mexico and European Union.
Some countries are fighting back with revenge charges, while some are looking for a suit and some are trying to talk about their way out of 25 percent rates.
So, who is trying to avoid the trade war, who is trying to avoid it, and what does this mean for industries that are dependent on these metals?
Who supplies steel and aluminum to the United States?
According to the International Trade Administration, Canada, Brazil and Mexico are the top three steel suppliers in the United States. The rest of the leading suppliers are South Korea, Vietnam, Japan, Germany, Taiwan, the Netherlands and China, which imports 30 percent of American steel.
Here is a breakdown:
- Canada – 10 percent
- Brazil – 14 percent
- Mexico – 9 percent
- South Korea – 8 percent
- China – 2 percent
For aluminum, the largest suppliers are Canada, United Arab Emirates, Russia and Mexico. Canada is a dominant supplier, responsible for importing almost 40 percent of the UAE, Russia and Mexico.
Tariff war will have a widespread effect on the US manufacturers and consumers, as steel and aluminum are important in building home appliances, cars, planes, phones and buildings.
Steel is a particle material for construction, production, transportation and energy, which has a construction area using one third of all steel imports. This will increase the cost for infrastructure projects, including airports, schools and roads.
Automotive and aerospace industry as well as food packaging must be aluminum, light and rust-resistant.
The United States depends especially on aluminum imports, approximately half of the metals in the country are coming from foreign sources.
According to data from the US Commerce Department, US steel and aluminum imports last year were $ 31 billion and $ 27 billion respectively.
Vice -President of the Asia Pacific Foundation of Canada, Vice President of the research and strategy, said the rates are particularly harmful because “there is a little financial or genuine national security argument for them”.
“America cannot actually coast these items, so duties mainly cause financial pain for American customers and main trade partners,” Nadajibulla told Al Jazira.
Instead, they present “unrelated” unpredictableness and levels of instability. “
Underline the established trade criteria, the United States “encourages to effectively respond to other nations, including the destructive effect of the entire stock market and the confidence of investors and customers beyond.”
How are the countries responding?
Canada
The largest steel and aluminum supplier to the United States has taken a strong stand against the rates. Prime Minister Justin Trudeau has called the rates “unjust” and “silent object”.
Canada announces a 25 percent of the US goods worth $ 20.6 billion, which includes $ 8.8 billion on steel and $ 2 billion in the uminuminum luminum imports. He has also imposed an additional $ 10 billion on American items such as computer and server, display monitors, water heaters and sports equipment.
These countermasters affect Thursday.
“We will be standing for our workers, and we will be sure that Americans will know that they have the consequences of their leadership decision,” Trudeau said earlier this week.
Mark Carne, who passed Truudo as Prime Minister, has promised to maintain the rate until the United States charges with the right trade methods. He said that he was ready to take “a more comprehensive approach for trade.”
“We strongly believe that it is not our general interest to burden our economy in a world filled with geographical and economic uncertainty,” he said on Wednesday.
In addition to 25 per cent counter-tariffs on $ 20.8 billion of US imports, the latest rates have been imposed on Trump Levi on March 4.
European Union
The European Union has also announced targeted rehabilitation measures worth more than $ 2 billion than American items such as motorcycles, peanut butter and jeans. These solutions will come in two stages:
- Phase 1 (April 1) – Re -installing the suspended rates of $ 8.7 billion of US products, including steel, aluminum, borban and motorcycles. In the first tenure of Trump, the counter level imposed from 2018 to 2020 was suspended under the Biden Administration.
- Phase 2 (April-April)-Plantry, dairy products, fruits and cereals are presenting new rates in US $ 19.6 billion American exports.
European Commission Chairman Ursula Won Dear Lane has warned that these rates will increase prices and threaten jobs on both sides of the Atlantic.
“We are very sorry for these measures. The rate is tax. They are bad for business and are worse for customers, “she said that the EU will” always be open to negotiations “.
Mexico
Mexico’s response is unclear. President Claudia Shanbum has suggested that only any revenge rates will be implemented if negotiation fails. However, she has signed the Mexico-Kanada Agreement (USMCA) with Trump’s first tenure with Trump till April 2 for the mexican imports under the trade agreement.
However, analysts say that non -USMCA items can still attract new 25 percent rates.
This happened after a month’s prices at Mexico and Canada, during which the two countries agreed to promote border security measures. Trump has followed his campaign to raise prices on Mexico without stopping immigration and drug trafficking on Mexico.
Brazil
Despite being one of the tough countries, Brazil has chosen a diplomat on revenge. Brazilian officials are in the discussion with Washington, hoping to get a discount.
The government, led by left -wing president Luiz Inacio Lula Da Silva, issued a statement to the United States regretting the “unjust” movement.
“President Lula told us to be calm and realized that we have talked about the previous people in the past,” Finance Minister Fernando Haddad told reporters on Wednesday.
South Korea
Trump has accused South Korea of taking advantage of the United States. The average rate of Soul is four times higher than the evidence. Due to the free trade agreement, the trade between two close friends is almost free of charge.
“And we help South Korea a lot of military and many other ways. But that happens, “Trump said in a speech to the US Congress earlier this month.
He also promised to scrap the chips and science laws, under which many Korean companies, including Samsung Electronics, seek the help of the United States.
South Korea has chosen negotiations instead of struggling. He has also activated the “full emergency response mode” to protect local industries.
On Tuesday, South Korea’s activist Choi Sang-Mok said that Trump’s “America First” policy had begun to target his country.
South Korea officials have actively interacted with their American parts to talk about possible suits and pay attention to mutual issues. Trade Minister Cheong in-Ko will visit Washington on March 13-14, DC.
The Trump administration has tried to affect the trade policy report of the administration and to present the role of South Korea.
China
Beijing is not a US leading steel supplier. However, he has taken the rates directly and responded aggressively.
Chinese Foreign Ministry spokesman Mao Ning told reporters that this action was violating the rules of the World Trade Organization and China will take all necessary measures to protect its rights and interests in the world’s largest steel growers and the second largest economy.
The spokesman said, “No one is winning trade war or every war.”
China has already slapped the US rates on the US, while revenge for the 5 percent of the blanket tariffs imposed by Trump.
How will the Tariff War be affected by your friends?
Another important US associate Australia, which is affected by Trump’s rate, said Australia would not take revenge. Prime Minister Hrithoni Albaniz called these rates “entirely justified”, but refused to charge Australian customers as it would affect.
In the first tenure of Trump, the Canber had a discount from steel and aluminum prices.
According to Nadjibula, these rates painted such an image that the United States is becoming a “incredible partner for close friends”.
She said that countries like Canada, Australia and South Korea may have “thought of reducing their insecurity” and pursuing strategies to diversify trade partners.
She said, “When the big economies are busy with the Tite-For-Tat tariffs, the risk of global trade recession is huge,” she said. “These measures do not only hurt the line at the bottom of the nearby-they threaten the entire box of open trade, part of the world’s economic growth and stability.”