Former President Donald Trump has finally implemented the much discussed global 25% tariffs on steel and aluminium imports. This initiative was first implemented in 2018 and has since been met by different countries in the global arena, with Europe promising to retaliate.
The measures that Trump implemented in order to protect American industries and jobs have resulted in a number of changes in the trade of these vital products in the global market. The United States has explained that the tariffs are required to address the country’s dependence on foreign steel and aluminium, including from countries like China. Nonetheless, the policy has been criticized for having the potential to escalate trade wars and damage global industries.
In response, Europe has announced that it will implement countermeasures, and the EU has already announced that it will impose tariffs on a number of American products, including motorbikes and bourbon. The counterattacks are expected to be directed at the industries that can hurt the economy of the United States, and specifically the key states that depend on exports.
The EU has for a long time now contended that these tariffs are against the World Trade Organization (WTO) rules and are a threat to global relations. The EU representatives are now trying to find out how to resolve the issue diplomatically, but from the look of things the trade war is still on.
The effects of the tariffs and counter-tariffs are still unclear and both sides are prepared for the next round of sanctions. These trade tactics, according to economists, may increase the price that consumers have to pay for steel and aluminium and also affect their supply chain.
The whole world is watching the developments, and the outcome of this trade dispute will define not only the relations between the countries but also the trends in the world markets.
