China and EU Counter Vow Against U.S. Steel Tariffs amid Trade Tensions
China and the EU have announced countermeasures against new U.S. tariffs on steel and aluminum, which are set at 25 percent without exceptions. These tariffs may increase production costs across several industries, prompting concerns about rising consumer prices and potential economic instability. The EU plans to implement responses starting April 1, while China expresses intentions for necessary retaliatory measures. The situation is escalating trade tensions between the U.S. and its major partners.
In response to the recent implementation of sweeping U.S. steel and aluminum tariffs, both China and the European Union have pledged to defend their economic interests through countermeasures. The tariffs were enacted without exceptions, prompting strong reactions from these major global economies and escalating tensions between the U.S. and its key partners.
The European Commission announced plans to impose a series of countermeasures starting from April 1, labeling the U.S. trade restrictions as “unjustified.” Commission chief Ursula von der Leyen expressed regret over the U.S. measures, stating that the EU’s response would equate to the value of U.S. tariffs at approximately $28 billion.
China, despite not being a significant exporter of steel to the U.S., expressed its intent to take “all necessary measures” in retaliation. Foreign ministry spokeswoman Mao Ning emphasized that trade wars yield no winners and predicted serious repercussions for the multilateral trading system.
President Trump’s tariffs, set at 25 percent for both metals, are expected to result in increased production costs across various sectors such as home appliances, automobiles, and beverage cans, with potential consumer price hikes on the horizon. Experts from the Cato Institute warned that these tariffs would likely lead to increased costs in the auto manufacturing and construction industries, which are heavily reliant on steel.
The trade turmoil under President Trump has seen heavy tariffs imposed on key U.S. trading partners, including Canada, Mexico, and China. Canada, which supplies a significant portion of U.S. aluminum and steel imports, stands to be particularly impacted, with many products facing tariffs up to 50 percent unless compliant with the USMCA.
The financial markets reacted negatively to the uncertainties stemming from Trump’s trade policies, evidenced by significant declines in U.S. stock indexes and similar drops in Asian markets. Analysts have raised concerns that the ongoing tariffs and the protectionist environment could push the economy closer to recession.
The U.S. government maintains that these tariff actions are meant to protect American industry from foreign competition. Previous tariffs imposed in 2018 on steel and aluminum already incited retaliation from the EU, which plans to reinstate higher levies as part of its strategy against the U.S. tariffs.
Despite numerous diplomatic efforts from allies like Australia and Japan to secure exclusions from the tariffs, the recent measures included no exemptions whatsoever. Both countries’ leaders have voiced their concerns regarding the tariffs, with Japan’s chief spokesperson describing the development as “regrettable” and Australia’s Prime Minister deeming them “entirely unjustified.”
The UK has also expressed disappointment over the new tariffs while refraining from taking retaliatory actions, in light of ongoing efforts to solidify an economic agreement with the United States.
The enactment of new U.S. tariffs on steel and aluminum has prompted firm countermeasures from both China and the European Union, exacerbating trade tensions among major economies. The European Commission and China plan to respond in kind, indicating the far-reaching implications of protectionist policies on international trade and economic relations. The potential for increased consumer prices and turmoil in financial markets calls for careful consideration of the long-term effects of such trade measures.
Original Source: www.hurriyetdailynews.com
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