Trump’s Sweeping 25% Tariffs on Steel and Aluminum Spark Trade War

President Donald Trump has imposed 25% tariffs on all steel and aluminum imports into the United States, marking a major escalation in his administration’s trade policy. The move, aimed at boosting U.S. manufacturing, is expected to raise costs for businesses and consumers while triggering economic retaliation from global trade partners.

Within hours of the announcement, the European Union responded with countermeasures, imposing $28 billion in tariffs on U.S. exports, including boats, bourbon, and motorbikes. The decision intensifies tensions between the U.S. and its key trade allies.

Economists warn that the tariffs will increase costs for industries dependent on steel and aluminum, potentially leading to price hikes for essential goods such as cars, appliances, and machinery. Analysts have pointed to the effects of Trump’s first-term tariffs, which led to a $3 billion decline in industrial output by 2021 due to rising material costs.

The new tariffs could also cost 100,000 U.S. jobs, including 20,000 in the aluminum industry, as manufacturers struggle with higher expenses.

Market prices for metals have already reacted, with steel surging over 30% and aluminum rising by 15% since the announcement. The impact is expected to ripple across industries, affecting both raw materials and manufactured goods.