The trade war escalated as 25% of Trump's metals come into force

The tariffs imposed by US President Donald Trump for the import of steel and aluminum have come into force that is likely to escalate tensions with some of the largest trading partners in America.

The measure increases a flat duty on steel and aluminum, entering the United States to 25% and terminates all exceptions to the country's country.

He aroused an immediate response from the European Union, which said it would impose a billion euro counter rates in the United States.

Trump hopes that tariffs will increase steel and aluminum production in the United States, but critics say this will increase prices for US consumers and put economic growth.

The American Institute of Iron and Steel (AISI), a group representing US steel manufacturers, welcomed tariffs, saying they would create jobs and increase the production of interior steel.

Group President Kevin Dempsey said this move has closed a system of exceptions, exceptions and quotas that allow foreign manufacturers to avoid tariffs.

“Aisi applauds the President's actions to restore the integrity of steel tariffs and apply a healthy and reinforced program to deal with unfair commercial practices,” added G -n Dampsi.

The United States is a major importer of aluminum and steel, and Canada, Mexico and Brazil are among its largest suppliers of metals.

Other countries responded immediately to this move.

UK Minister Jonathan Reynolds said he was disappointed and “all the options were on the table” to respond in national interest.

The European Commission said in a statement that it imposed on counterparts for 26 billion euros (€ 21.9 billion, $ 28.3 billion) of goods in the United States.

Australia's Prime Minister Anthony Albanese said the Trump administration's decision to continue with the new tariffs was “completely unjustified”.

“This is against the spirit of lasting friendship of our two nations and essentially contrary to the benefits that our economic partnership has delivered more than 70 years,” he added.

Albanese, who was trying to secure the release from the tariffs, also said that Australia would not impose response, as such a move would only increase prices for Australian consumers.

Meanwhile, Canada Energy Minister Jonathan Wilkinson told CNN that his country would avenge, but added that Canada did not want to escalate tensions.

Canada is one of the closest trading partners in America and the largest exporter of steel and aluminum for the United States.

In 2018, during his first term as president, Trump imposed an import tariffs of 25% for steel and 10% for aluminum, but in the end the carved were agreed for many countries.

This time, the Trump administration signaled that there would be no exceptions.

Tariffs mean that US enterprises that want to bring metals to the country will have to pay a 25% tax on them.

This will probably lead to higher costs for a large number of US industries, including aerospace space, car production and construction.

Michael Dimarino runs Linda Tool, a company in Brooklyn, which makes parts for the aerospace industry. Everything it does includes some steel, many of which comes from American mills.

“If I have higher prices, I pass them on to my customers. They have higher prices, they pass it on to the consumer,” said Dimarino, adding that he supported the call for increased production in the United States, but warned that the president's moves could support.

The US Automobile Policy Council, a group that represents car giants such as Ford, General Motors and Stellantis, also echoed such concerns.

Organization President Matus Blunt said “are concerned that specifically the cancellation of exceptions to Canada and Mexico will add significant costs” to car suppliers.

Some economists warn that tariffs can help US steel and aluminum industry, but harm the wider economy.

“It protects (the steel and aluminum) industry, but it hurts the consumers of their products by making them more expensive,” said Bill Readsh, a former employee of the Trade Division, who is now at the Center for Strategic and International Studies.

The fear of the economic cost of Trump's trade rates have caused Sale on American and Global Stock Markets which accelerated this week after the US President declined to rule out the prospect of an economic recession.

The S&P 500 Index of the largest companies listed in the United States fell by another 0.7% on Tuesday after dropping 2.7% on Monday, which was its biggest day decline since December.

The UK FTSe 100 Share Index, which was a lower Tuesday, fell even more and closed more than 1%. CAC 40 in France and Germany DAX also fell.

Meanwhile, the Oxford Economics research company said it reduced its growth prognosis in the United States for the year from 2.4% to 2% and made even more successful adjustments to its prospects for Canada and Mexico.

“Despite the decline, we are still expecting the US economy to surpass other major advanced economies over the next few years,” the report added.

“The uncertainty about the US tariffs is higher than ever.”

Earlier on Tuesday, US and Canada stepped back from the edge of a major escalation in the trade war.

This happened after Trump said he had stopped a plan to double US tariffs for Canadian steel imports and metals up to 50%, only hours after threatening them first.

The President's relocation came after the Canadian Ontario province stopped new fees of 25% of the electricity he sends to some northern states to the United States.

Despite the ascent, Canada will still face 25% Trump's rates for steel and aluminum imports that have just come into force.

Additional reporting by Michel Flles in New York