Trump’s Response Tariffs May Influence Global Economy

U.S. President Donald Trump has instructed the creation of a strategy to impose retaliatory global import taxes on all trading partners, a move that could influence the global economy significantly.

On February 13, Trump enacted an executive order assigning a team to scrutinize each nation’s trading conduct that is unfair to the U.S., aiming to retaliate effectively to “level the playing field.”

“For many years, the U.S. has faced unfair treatment from various countries, both allies and adversaries. This system will restore fairness and prosperity to a trade framework that has been overly complicated and unjust,” Trump stated during the signing.

Trump specified BRICS nations as likely candidates for elevated import taxes along with the European Union’s VAT.

Even though the plan is scheduled to be implemented in April, preparations have begun.

On February 11, Trump enforced a 25 percent import tax on all steel and aluminum imports into the United States.

This adds to the existing 10 percent import tax recently imposed on China to tackle the fentanyl crisis affecting the United States.

On February 11, European Commission President Ursula von der Leyen issued a statement indicating they would respond with “firm and proportionate countermeasures.”

This initiative is part of Trump’s “America First” agenda, focused on safeguarding domestic industries rather than relying on foreign countries, enhancing manufacturing jobs, and bolstering national security interests.

Canada and Mexico stand out as some of the largest exporters of steel and aluminum to the United States.

Trump had previously signaled intentions to impose import taxes on these nations, citing their lack of contribution towards addressing illegal immigration and drug trafficking issues.

In response to a recent 30-day delay, Mexico deployed 10,000 troops to the U.S.–Mexico border to monitor illegal immigration activities.

These tariffs are set to take effect on March 12.

In September 2023, illegal immigrant encounters peaked under the Biden administration but declined towards the end of the year.

On February 2, Tom Homan, Trump’s border czar, reported a 93 percent reduction in border encounters since Trump was inaugurated on January 20.

During his initial term, Trump had enacted similar import taxes: 25 percent on steel and 10 percent on aluminum from most nations, citing national security concerns. Some crucial trading partners were subsequently exempted, including Argentina, Australia, Brazil, Canada, Japan, Mexico, South Korea, the EU, Ukraine, and the UK.

The White House, in its executive order, attributed these exemptions to loopholes that countries like China exploited.

Andrew Moran contributed to this report.