US President Donald Trump has officially unveiled his plan for reciprocal tariffs against its every trading partner applying tariffs on US goods. Canada, the EU and Brazil are among the countries expected to be affected by these.
Accordingly, Trump has ordered his team to match US tariffs with other countries' tariffs and to take into consideration other non- tariff measures such as value-added taxes and digital service taxes. As an example, the US stated that the EU imposes 10 percent tariffs on imported US cars, while the US only applies 2.5 percent tariffs on imported EU cars. Also, Canada and France each collect over $500 million per year from US companies under digital service taxes, even though the US does not collect such taxes from foreign companies.
As a result, the US aims to ensure fairness in global trade and reduce its annual trade deficit in goods, which exceeded $1 trillion in 2024. In the meantime, the newly announced tariffs will put US workers first, improve the US' competitiveness in every area of industry and boost its economic and national security.
"AISI applauds President Trump's action ordering the development of a comprehensive plan for restoring fairness in U.S. trade relationships and countering non-reciprocal trading arrangements," said Kevin Dempsey, president and CEO of Washington, D.C.- based American Iron and Steel Institute. “American steel producers know well the negative impact of foreign unfair trade practices, including subsidies, currency manipulation and other unfair and discriminatory policies and practices, on domestic industries and their workers."
Mr. Dempsey continued, "Steel is a widely traded good and our industry has been repeatedly harmed by unfair trade practices around the world. Due to foreign government subsidies and other trade-distorting government policies, global overcapacity in the steel industry reached 573 million metric tons in 2024. This overcapacity, if unaddressed, can fuel surges in injurious imports into our market, and the problem of steel overcapacity is not limited to any one country or region of the world."
He added, "We look forward to working with the Secretary of Commerce, the US Trade Representative and other key administration officials as they develop their plan of action to ensure reciprocity in international trade and to preserve the competitiveness of the American steel industry and other sectors."
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