Trump tariffs: Retaliate or negotiate – what will US partners do next?

Some of the US’s major trade partners are trying to reach a deal after President Trump decided to impose a 25 % tariff on all imports of steel and aluminum.

According to statistics from the American Iron and Steel Institute, the US is a major supplier of nearly a quarter of the material it uses, adding that its dependence on aluminum is actually greater.

Its primary manufacturers include its neighbors, Canada and Mexico, as well as some supporters in Asia.

Trump has stated that there will be no “exceptions or exclusions” when his most recent taxes go into effect on March 12.

How have some nations responded to the revenue with only over a month left before it starts implementing?

Canada has a lot to gain as one of the nation’s largest exporters of both supplies.

According to Deborah Elms, a business analyst with the Hinrich Foundation,” Canada has additional reasons for irritation because they are one of the largest aluminium suppliers to the US.”

Canada’s economy minister François-Philippe Champagne has slammed the choice, calling it” completely unwarranted”.

He claimed that American material is being used in “important US industries” like defence, manufacturing, and energy in a post on X, adding that this made” North America more dynamic and safe.”

He added that Canada had “defend our business as we have always done and will always do” and that its “response may be precise and measured”

Even though Trump had previously stated that he would not take into account any instances, it seems as though it may disregard this principle for Australia.

Anthony Albanese, the prime minister of Australia, claimed he had spoken with Trump on the phone and that the US head was thinking about applying for an exemption.

Trump had previously called Albanese a “very good man” and that the US has a trade deficit with Australia.

” The reason is they get a lot of jets. They’re quite far away and they need thousands of helicopters”, Trump said. ” We basically have a glut, it’s one of the only nations which we do”.

But despite being the nation’s largest producer of brass ore- a major steelmaking natural material- Australia’s exports of steel are not as important.

According to Albanese, American metal accounts for about 1 % of US goods, though its material is used by a significant US military builder.

The American government has yet to respond informally to the most recent US tariffs, but business system UK Steel has stated in a statement that the tariffs will “devastate their industry.”

” The US is our second-largest trade industry after the EU. At a time of shrinking demand and high costs, rising protectionism globally, particularly in the US, will stifle our exports and damage over £400m ($ 494m ) worth of the steel sector’s contribution to the UK’s balance of trade”, Gareth Stace, UK Steel’s Director General said in a statement.

Given our comparatively modest production volumes compared to big steel countries, President Trump’s comments are “deeply disheartening,” he said, adding that there was a chance that other nations might “redirect” steel to the UK market to evade US tariffs.

However, the European Commission has reacted strongly to the possibility of more taxes, saying it does “protect the interests of Western businesses, workers and consumers from unfair measures”.

The US was the second-largest marketplace for EU imports of iron and steel, according to industry party Eurometal.

During his first term, Trump imposed taxes on both the UK and the EU, but the Biden administration after eased those limitations.

Sandeep Poundrink, India’s metal secretary, reportedly claimed that Trump’s tariffs won’t have much of an impact, citing the fact that India just exports a small portion of its metal to the US.

How much material do we really export to the US? ” said Poundrik speaking at an business function, according to a PTI record.

” We produced 145 million tonnes of steel last time, of which 95, 000 kilograms was exported to the US. But, how does it matter if out of 145 million kilograms, you are not able to trade 95, 000 kilos.”

But not everyone stock this attitude.

Naveen Jindal, the president of the Indian Steel Association ( ISA ), stated that he is “deeply concerned” that US restrictions could cause steel producers to dump their products in India for less money.

These taxes are “expected to slash steel imports to the US by 85 %, creating a massive surplus that will probably flood India, one of the few major businesses without trade restrictions,” said Naveen Jindal.

According to the American Iron and Steel Institute, South Korea is a big metal supplier to the US.

Hyundai, Kia, Samsung, and LG, which have companies in the US and Mexico, use its material.

South Korea did deliberately consider “whether there is room for negotiation with the United States,” its Trade Minister Cheong In-kyo said on Tuesday, a day after the Industry Ministry held an urgent meeting with producers.

Seoul was given a waiver in exchange for a yearly import quota in 2018, the same year Trump imposed a 25 % tariff on all steel imports.

Although it’s not known what offers might actually be cut or exemptions granted over the upcoming month, Eswar Prasad, an expert on international trade policy at Cornell University, predicts that US trading companions may long-term get diversification by selling their goods elsewhere.

He adds that” Trump’s major deeds have put the rest of the world on the rear finger” because of the US market’s strength in relation to the majority of its trading partners.

According to another analyst, the US’s trading partners may get appeasement in the near future, but they might nonetheless choose to intervene.

Our colleagues may come to the conclusion that conversations are never a long-term solution because levies are coming so quickly and angry, said Wendy Cutler, Vice President of the Asia Society Policy Institute.