Trump's blanket tariffs trigger countermeasures from many countries

In response to US President Donald Trump's sweeping 25% tariff on steel and aluminum imports from all countries that officially took effect on March 12, some countries have countered with retaliatory tariffs while others are seeking ways to circumvent the high duties, Mysteel Global notes.

European Union (EU): The same day Trump's tariffs took effect, the EU launched countermeasures on US imports worth up to 26 billion euros ($28 billion) that matched the economic cope of the US metal tariffs, according to the announcement released by the European Commission. Those measures, to be applied on a wide range of products including boats, motorbikes and alcohol, will take effect on April 1, the announcement said.

Canada: The biggest foreign supplier of steel and aluminum to the US also responded swiftly with 25% retaliatory tariffs on C$29.8 billion ($20 billion) worth imports from US, effective from March 13, according to the Department of Finance Canada's news release on March 12. The targeted products cover not only the two metals but also computers, sports equipment and other products.

Brazil: Instead of applying retaliatory tariffs immediately, Brazil is in the process of exploring all possible measures - including the recourse to the World Trade Organization - to "mitigate the harmful effects of the U.S. actions and safeguarding Brazil's legitimate interests," according to a joint press release by the country's Ministry of Foreign Affairs and the Ministry of Development, Industry, and Commerce on March 12. Brazilian and U.S. government officials were to hold a meeting on March 14 to seek an understanding on tariffs, but the results are yet to be disclosed, Mysteel Global learns.

South Korea: South Korea is seeking negotiations with US for potential exemptions of the tariffs, said Cheong In-kyo, head of the trade negotiation division at the country's Ministry of Trade, Industry and Energy (MOTIE) who is now visiting US for the discussions. However, he didn't rule out the possibility of imposing retaliatory tariffs if the negotiation ends in vain. Ultimately, South Korea plans to come up with a response strategy before the end of this month to deal with the US tariffs, according to the minister of MOTIE Ahn Duk-geun.

Undoubtedly, some of the countermeasures have riled President Trump, who has taken further steps to escalate the trade war. On Thursday, he threated the EU with a 200% tariff on imported wines, champagnes, and other alcoholic products if its 50% tariff on imported US whiskey was not removed, according to Trump's post on a social media platform.

Written by Irene Zhuang, zhuangailing@mysteel.com

Edited by Russ McCulloch, russ.mcculloch@mysteel.com