U.S. President Donald Trump stated he has no plans to create exemptions on steel and aluminum tariffs, announcing that reciprocal and sectoral tariffs will be enforced on April 2.
Last month, Trump increased tariffs on imports of steel and aluminum to a flat 25 percent, without exemptions or exceptions. This decision was aimed at supporting U.S. industry while contributing to a growing trade war.
Trump’s comments on tariffs
Speaking to reporters aboard Air Force One, Trump indicated that reciprocal duties on U.S. trading partners would be implemented alongside auto tariffs.
“In certain cases, both,” Trump remarked when asked about the imposition of sectoral and reciprocal tariffs on April 2. “They charge us, and we charge them. Then, in addition to that, on autos, on steel, on aluminum, we’re going to have some additional,” he elaborated. Trump has emphasized in earlier statements that he would impose reciprocal tariffs on both U.S. allies and adversaries starting in April.
Read more: EU countermeasures to Trump’s tariffs effective April 1
Impact of the trade war on financial markets
The escalating trade war between the U.S. and several key trading partners has unsettled financial markets and raised concerns regarding its impact on global economies. On Thursday, U.S. President Donald Trump threatened to enforce a 200 percent tariff on wine, cognac, and other alcoholic imports from Europe. This action was in response to the European Union’s proposed tariffs on American whiskey and other products, set to take effect in April, following Trump’s implementation of a 25 percent duty on steel and aluminum imports that began on Wednesday.
Last week, Trump made a sudden reversal regarding his commitment to increase tariffs on steel and aluminum imported from Canada to 50 percent. This decision came just hours after he announced the higher tariffs, causing significant volatility in financial markets. The change in stance followed a Canadian official’s retreat from plans to impose a 25 percent surcharge on electricity.
Also, the European Union (EU) on Wednesday revealed its retaliatory trade action following the Trump administration’s official decision to raise tariffs on all steel and aluminum imports to 25 percent. This also includes duties on industrial and agricultural products that are set to take effect on April 1.
