The European Union (EU) pledged to retaliate with "firm and proportionate countermeasures" following US President Donald Trump's decision to raise tariffs on all steel and aluminium imports with no exceptions or exemptions. The new tariffs, which will increase the US aluminium tariff to a flat 25 per cent from 10 per cent, eliminate country exceptions and product-specific tariff exclusions, and apply to millions of tons of imports from countries like Canada, Brazil, and South Korea, will take effect on March 4. Trump framed the move as a way to simplify tariffs, applying a flat 25 per cent rate on all countries. He also signalled potential future tariffs on cars, semiconductors, and pharmaceuticals. European Commission President Ursula von der Leyen criticised the decision, stressing the negative impact on businesses and consumers and affirming that the EU would not remain passive. Canada, a major supplier of aluminium to the US, also condemned the tariffs, with Prime Minister Justin Trudeau pledging a firm response. The new tariffs have already caused market fluctuations, with gold prices reaching a record high amid concerns of a trade war. The EU has yet to detail its specific countermeasures, but one option could be the reactivation of tariffs imposed in 2018. The ongoing trade tensions are likely to have significant effects on global trade, particularly in the steel and aluminium industries. Attribution: Reuters Subediting: Y.Yasser
