The United States broadened its slate of tariffs on Wednesday as sweeping 25-percent tariffs on steel and aluminum imports took effect "with no exceptions or exemptions."
This move marks the latest escalation in U.S. President Donald Trump's unpredictable trade policies, which have drawn criticism, triggered retaliatory measures, and rattled investor sentiment and global equity markets.
For instance, the broadest measure of the U.S. stock market has lost nearly $5 trillion in value over the past three weeks.
The European Commission responded almost immediately, saying it would impose counter tariffs on 26 billion euros ($28 billion) worth of U.S. goods starting next month. Close U.S. allies Canada and the UK criticized the tariffs, with Canada mulling reciprocal actions and British Business and Trade Secretary Jonathan Reynolds saying "all options were on the table" to respond in the national interest.
Backfire on the U.S.
This is not the first time Trump has imposed tariffs on steel and aluminum. During his first term in March 2018, he introduced a 25-percent tariff on steel and a 10-percent tariff on aluminum, aiming to reduce reliance on foreign metals and boost domestic production. This time, however, both steel and aluminum face a 25-percent tariff, raising concerns about even greater economic repercussions.
Saida Litosh, lead metals analyst at the London Stock Exchange Group (LSEG), highlighted the differences between Trump's two-term tariff policies in an interview with Al Jazeera.