WASHINGTON/BRUSSELS, Feb 11 (Reuters) - Mexico, Canada, and the European Union on Tuesday criticized the decision by U.S. President Donald Trump to impose tariffs on all steel and aluminum imports next month, escalating concerns of a potential trade war.
On Monday, Trump announced an increase in U.S. tariffs on aluminum to 25% from the prior 10%, eliminating country exemptions, quota deals, and numerous specific tariff exclusions for both metals. These actions, effective March 12, will impact steel and aluminum imports from countries like Canada, Brazil, Mexico, and South Korea that previously entered the U.S. duty-free.
Mexican Economy Minister Marcelo Ebrard labeled the tariff decision as "unjustified" and "unfair", without detailing potential reciprocal tariffs on U.S. steel or aluminum imports. Canadian Prime Minister Justin Trudeau deemed the tariffs "unacceptable", vowing a decisive response if necessary. European Commission President Ursula von der Leyen pledged "firm and proportionate countermeasures".
Trump defended the move, stating, "It's 25% without exceptions or exemptions," and hinted at forthcoming tariff announcements on countries imposing duties on U.S. goods. He also mentioned considering tariffs on cars, semiconductors, and pharmaceuticals.
European Commission head Von der Leyen emphasized the negative impact of tariffs on business and consumers, stating, "Unjustified tariffs on the EU will not go unanswered." The EU may revive tariffs suspended in 2018 as part of a former agreement with then-U.S. president Joe Biden.
The American Chamber of Commerce to the EU (AmCham EU) criticized the tariffs for their potential consequences on jobs and prosperity, with broader repercussions expected in industries reliant on steel and aluminum imports.
Ford Motor CEO Jim Farley expressed concerns over Trump's tariffs, noting increased costs and uncertainties. Steel imports accounted for approximately 23% of American steel consumption in 2023, with Canada, Brazil, and Mexico being major suppliers.
To restrict minimally processed Chinese and Russian metals bypassing tariffs, Trump will enforce new North American standards mandating steel to be "melted and poured" and aluminum to be "smelted and cast" within the region. China's significant steel overcapacity has raised concerns about trans-shipment to avoid tariffs and trade restrictions.
(Conversion rate: $1 = 0.9684 euros)