Trump Flooded with International Criticism Over Steel Tariffs

WASHINGTON, WEDNESDAY - Mexico, Canada, and the European Union condemned the imposition of tariffs on steel and aluminum by United States President Donald Trump, Tuesday (2/11/2025). Countries around the world are also preparing to hear more announcements about new import duties from Trump. In the US, many businesses are affected by the tariffs.

Trump announced an increase in import tariffs on steel and aluminum by 25 percent from the previous 10 percent, on Monday (2/10/2025). Australia, Argentina, Brazil, the United Kingdom, Canada, South Korea, Mexico, and the European Union are the targets of this policy. The tariffs will take effect on March 12, 2025.

Mexican Economy Minister Marcelo Ebrard called the tariff decision "unjustifiable" and "unfair." The US has recorded a trade surplus with Mexico for steel and aluminum, amounting to nearly 6.9 billion US dollars in 2024. It is not yet clear whether Mexico will impose retaliatory tariffs on steel or aluminum imported from the US.

"That tariff cannot be justified. That tariff is unfair according to President Trump's own argument. Because, I repeat, Mexico has more steel imports than exports," said Ebrard.

Similarly, Canadian Prime Minister Justin Trudeau stated that the tariff policy is "unacceptable." Canada, if necessary, will respond firmly and clearly.

European Commission President Ursula von der Leyen also condemned and regretted Trump's decision. This is because tariffs are a bad tax for businesses and even worse for consumers. EU steel exports to the US have averaged around 3.1 billion US dollars per year over the past decade.

So far, the EU plans to take retaliatory action. The EU could reinstate the 2018 tariffs on US products, such as bourbon, motorcycles, and orange juice. These tariffs were suspended during the tenure of the predecessor, President Joe Biden, until the end of March. "These tariffs will trigger firm and proportional retaliatory measures," said Von der Leyen.

The American Chamber of Commerce for the EU (AmCham EU), which represents US companies active in Europe, also criticized Trump's tariffs. "The damage will extend beyond the steel and aluminum sectors, impacting all businesses that rely on these materials throughout the supply chain," the AmCham EU statement read.

Britain’s steel industry body called the proposed tariffs a “huge blow.” A spokesman for British Prime Minister Keir Starmer said London was in touch with Washington to discuss the details.

Meanwhile, Brazilian President Luiz Inacio Lula da Silva has vowed to retaliate if Trump imposes tariffs, though he does not want to engage in a trade war with the US. In South Korea, acting President Choi Sang-mok has sought to reduce uncertainty “by building close ties with the Trump administration and expanding diplomatic options”.

The 25 percent tariffs on steel and aluminum are a follow-up to Trump's 25 percent tariffs on Mexican and Canadian goods. However, those tariffs were delayed for 30 days after Mexico and Canada said they would retaliate last week. Chinese goods will still be subject to a 10 percent tariff increase.

Trump has signaled he could impose additional tariffs on cars, pharmaceuticals and computer chips, and has vowed to announce “retaliatory tariffs” to match other governments’ tariffs on Tuesday or Wednesday.

In addition, Trump plans to impose new North American standards that would require steel imports to be “melted and cast” and aluminum to be “melted and cast.” The move is aimed at curbing imports of minimally processed Chinese and Russian metals to avoid further tariffs.

Although China exports small amounts of steel to the US, the US holds China partly responsible for the world's steel overcapacity. The US says subsidized production in China forces other countries to export more, leading to the transhipment of Chinese steel through other countries to the US to avoid tariffs and other trade restrictions.

Canada will account for nearly 80 percent of U.S. aluminum imports in 2024. Steel imports, meanwhile, will account for about 23 percent of U.S. steel consumption in 2023, according to data from the American Iron and Steel Institute. Canada, Brazil and Mexico are the largest steel suppliers.

Companies including Coca-Cola, Stellantis and Ford, as well as smaller aluminum, aerospace and home appliance companies are expected to be affected by Trump’s actions. Ford CEO Jim Farley said the tariffs have added “a lot of costs and a lot of disruption” to American businesses.

Ford has invested heavily in factories to produce batteries and electric vehicles in Ohio, Michigan, Kentucky and Tennessee. But the company could be forced to lay off workers if billions of dollars in government subsidies and other financial support for electric vehicle manufacturing ends.

Farley also criticized the threat of 25 percent tariffs that would have targeted cars and components from Mexico and Canada but were postponed last week. Ford makes some vehicles in Mexico, including the Maverick pickup truck, and engines in Canada.

“A 25 percent tariff would put a hole in the U.S. industry. It would give South Korean, Japanese and European companies that are bringing one and a half to two million vehicles into the U.S. that wouldn’t be subject to Mexican and Canadian tariffs,” Farley told The New York Times.

The Coalition of American Metal Producers and Users (CAMMU) said the failure to include an exemption process would hurt U.S. manufacturers, with small and medium-sized businesses having to pay more for their production inputs.

“Foreign customers are shifting their supply chains away from U.S. manufacturers. Once they are removed, especially for small, family-owned businesses, it is difficult to regain that lost business,” CAMMU said.

According to CAMMU, the threat of retaliatory tariffs from trading partners will further threaten U.S. exports and manufacturing jobs and hamper expansion plans. U.S. businesses will have to choose between investment, retention and long-term growth.

In the US, the impact of import tariffs is starting to be felt. Small and medium-sized business owners are having to swallow thin profit margins. Sandra Payne, owner of Denver Concrete Vibrator, imports steel and other raw materials.

The company makes concrete compacting equipment and other industrial equipment. Much of its steel comes from China, Canada and Mexico.

“Small businesses operate on very thin margins. So a 25 percent increase on any product is going to hurt. And we can’t raise prices every time costs go up. So we lose a lot of money,” Payne said.

Other business owners are also having to think hard about how to cut operating costs if the 25 percent tariff on Mexican and Canadian goods goes into effect. One of them is Julie Bednarski-Malik, owner of the Ontario, Canada-based food company Healthy Crunch.

Healthy Crunch sells its products in retail stores in Canada and the U.S. Bednarski-Malik may raise prices depending on how the tariffs play out.

"I know these tariffs are going to go into effect, but it's not clear exactly when and what percentages and what types of commodities will be affected. We hope that the U.S. and Canada can work together to find some kind of resolution because we are very close allies and trading partners," Bednarski-Malik said. (AP/AFP/Reuters)