Tue, 11 Feb 2025

Tue, 11 Feb 2025 With Trump's tariffs looming - will countries scramble to cut deals?

US steel suppliers have just over a month to decide how to respond before the new tariffs take effect.

* The US has imposed a 25% tariff on all steel and aluminum imports, effective March 12th, which has left trade partners scrambling.
* Canada, the largest supplier of steel and one of the largest suppliers of aluminum to the US, has condemned the decision as "totally unjustified".
* Canadian Industry Minister François-Philippe Champagne has vowed to defend Canadian industries and warned that Canada's response will be "clear and calibrated".
* Australia may receive an exemption due to its trade surplus with the US.
* The UK has said it will take a considered approach, but Chancellor Rachel Reeves believes a deal can be done.
* The EU has threatened firm and proportionate countermeasures if the tariffs are not lifted.
* India's steel secretary claims that Trump's tariffs will have little impact on the country, as it exports only a small fraction of its steel to the US.
* However, Indian steelmakers are concerned that the restrictions could lead to a flood of cheaper steel into the Indian market.
* South Korea, a major steel exporter to the US, is considering whether to negotiate with Washington or seek alternative markets.
* Analysts believe that US trading partners may seek to diversify away from the US in response to Trump's policies.
* The tariffs have the potential to raise prices for various goods, including cars and canned food.
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