Trump tariffs on aluminum, steel draw strong backlash

By GT staff reporters

Published: Feb 12, 2025

https://www.globaltimes.cn/page/202502/1328271.shtml

US President Donald Trump's decision to impose a 25 percent tariff on all steel and aluminum imports "without exceptions or exemptions" has drawn strong reactions from major US trading partners, with some of its traditional allies vowing firm countermeasures. 

This adds to growing global trade uncertainties as the Trump administration continues to wield the "tariff stick," breaking the fundamental principles of global trade, a Chinese trade expert said on Tuesday, refuting claims that Chinese steel and aluminum are at the heart of the tariffs by pointing out they target all US imports.   

After repeated threats, Trump on Monday US time signed proclamations raising tariff rates on steel and aluminum to 25 percent. A White House official confirmed the measures would take effect on March 4, Reuters reported.

"It's 25 [percent] without exceptions or exemptions. That's all countries, no matter where it comes from, all countries," Trump said, according to Reuters.  

Strong reaction

The move immediately sparked harsh criticism and pledges of countermeasures from major US trading partners. European Commission president Ursula von der Leyen said on Tuesday that the bloc will respond with "firm and proportionate countermeasures," according to a statement released by the European Commission on Tuesday.

"I deeply regret the US decision to impose tariffs on European steel and aluminum exports. Tariffs are taxes - bad for business, worse for consumers. Unjustified tariffs on the EU will not go unanswered - they will trigger firm and proportionate countermeasures. The EU will act to safeguard its economic interests. We will protect our workers, businesses and consumers," she said in the statement.

EU trade commissioner Maroš Šefčovič also spoke about US tariffs in the European Parliament on Tuesday, calling them "economically counterproductive," "bad for businesses, worse for consumers," and "raising costs for [US] businesses and fueling inflation," the Guardian reported.

He said the bloc was "assessing the scope of the measures announced overnight," but "will be responding in a firm and proportionate way with countermeasures."

German Chancellor Olaf Scholz said on Tuesday that "If the US does not give us any other choice, the EU will respond as one. As the largest market in the world, with 450 million citizens, we have the strength to do so. But I hope that we are spared the misguided path of tariffs and countertariffs. In the end, trade wars always cost both sides prosperity," the Guardian reported.

Spanish Prime Minister Pedro Sanchez on Tuesday has assured that he will defend, together with the EU, the interests of Spanish companies and workers in the face of the "trade war" opened by the US government which, in his opinion, will not benefit "anyone," according to a report by europapress.es.

Canada's Prime Minister Justin Trudeau called the tariffs "unacceptable".  

Canadian Innovation Minister François-Philippe Champagne said in a post on X on Tuesday that steel and aluminum tariffs on Canada, the US' closest ally, would be totally unjustified. 

"Canadian steel and aluminum support key industries in the US from defense, shipbuilding, energy to automotive... We will continue to stand up for Canada, support our workers, and defend our industries as we have always done and always will," Champagne said.

Meanwhile, some of the US' major trading partners are trying to find a deal. Australian Prime Minister Anthony Albanese told reporters on Tuesday that he has spoken to President Donald Trump and "presented Australia's case" for an exemption from the 25 percent tariff on aluminum and steel, according to the Xinhua News Agency. 

Indian Prime Minister Narendra Modi is preparing additional tariff cuts ahead of a meeting this week with Trump that could boost American exports to India and avoid a potential trade war, government officials said, Reuters reported on Monday.

"These countries made prompt responses because the US' latest move will have a negative impact on their trade and industries. In addition, this indicates that allies or not, the US government is inclined to leverage tariffs on countries that may have the so-called damage to the country's economy and industry," Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Tuesday.

While the US claims it is protecting its domestic steel and aluminum industries, it is actually shielding outdated and uncompetitive sectors, Gao Lingyun, an expert at the Chinese Academy of Social Sciences in Beijing, told the Global Times on Tuesday.

As a result, the US is blocking products where other countries have a comparative advantage. However, it lacks the conditions at home needed for its steel and aluminum industries to grow, so no amount of protection will make a difference, Gao said.

Even worse, the move, breaking the fundamental principles of global trade, will escalate global trade uncertainty and have a destructive impact on the world's trade order, Zhou warned.

Even as the US tariffs promoted firm responses from many so-called US allies, The New York Times claimed that "China is at the heart of Trump tariffs on steel and aluminum."

In response, Zhou noted that the US move targets all countries, instead of only aiming at China. 

In addition, the scale of China's steel and aluminum exports is relatively limited, Gao noted.

For a long time, the export ratio of Chinese steel has remained at about 5 percent, much lower than that of other steel-producing countries such as Japan and South Korea, an official from China's Ministry of Industry and Information Technology said earlier.

Commenting on the US' steel and aluminum tariffs at a regular press conference on Monday, Guo Jiakun, a spokesperson for the Chinese Foreign Ministry, said that protectionism leads nowhere, and trade and tariff wars have no winners. 

On Tuesday, Chan Kwok-ki, chief secretary for administration of the Hong Kong Special Administrative Region government, criticized the US' tariff measures for not complying with WTO rules on Tuesday, saying that the SAR will file a complaint with the WTO regarding this unreasonable arrangement.

Greater uncertainty

In addition to the steel and aluminum tariffs, Trump said that he would follow Monday's action with announcements about reciprocal tariffs on all countries that impose duties on US goods over the next two days, and said he was also looking at tariffs on cars, semiconductors and pharmaceuticals, according to Reuters.

Zhou noted that the move is just an excuse for the US to reduce its own tariff concession obligations. Under the framework of multilateralism, the US has benefited from tariff concessions for a long time.

More importantly, focusing solely on reciprocity does not necessarily benefit the US' own trade balance, industries or other problems, Gao said, adding that "every country has its own comparative advantages. In the context of international trade, the idea is that I offer what I'm good at, and you offer what you're good at, so we can all benefit."

If the US rigidly insists on absolute reciprocity, it essentially breaks a fundamental principle of international trade, Gao noted.