WASHINGTON: US President Donald Trump plans to slap 25 percent tariffs on steel and aluminium imports Monday, prompting threats of retaliation from Europe and a warning from China that there are no winners in a trade war.
Trump announced the tariffs to reporters aboard Air Force One on Sunday while flying to the Super Bowl, ramping up the aggressive approach on trade that has dominated his first three weeks back in office.
But European and Asian markets rose Monday as traders appeared to shrug off Trump’s threats, in contrast to a week ago when similar announcements sent global stocks tumbling.
Canada and Mexico — which Trump has already threatened with tariffs — are the biggest steel importers to the United States, according to US trade data. Brazil, Mexico and South Korea are also major steel providers.
“President Trump has made it clear that an important part of an America First Golden Age is steel production,” National Economic Council Director Kevin Hassett told CNBC on Monday.
Trump is set to sign a number of executive orders in the Oval Office later in the day, the White House said. It was not clear if any of them covered his promised steel and aluminum tariffs.
He has also promised an announcement on Tuesday or Wednesday on broader “reciprocal tariffs” to match the levies other governments charge on US products.
Republican Trump imposed sweeping tariffs during his 2017-2021 presidency to protect US industries, which he believed faced unfair competition from Asian and European countries, but his latest threats are still causing disquiet.
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