Newscasts - Trump metals tariffs kick in, sparking quick retaliation by EU

enCore Energy

12/03/2025 06:36

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Source: 'Reuters - Business videos'

Description: U.S. President Donald Trump's increased tariffs on steel and aluminum imports took effect on Wednesday, with the EU announcing $28 billion in reciprocal duties in response. Julian Satterthwaite reports.

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Video Transcript:

Donald Trump's tariffs on imports of metals took effect Wednesday. They impose 25% duties on shipments of steel and aluminum, with no countries excepted. The tariffs also hit hundreds of products made from the metals, from nuts and bolts to bulldozer blades and soda cans. Within hours, the EU fired back with $28 billion in reciprocal duties. Those tariffs will kick in from the start of next month. Canada is also mulling how to respond to the latest moves. Speaking Tuesday in Houston, Texas, Energy Minister Jonathan Wilkinson said Canada could limit sales of oil to the US.

But when we are talking about sort of non-tariff retaliation, it could be about restricting supply. It could be putting our own export duties on products, it could be energy and minerals, it could be broader than that.

Canada is the largest supplier of imported oil to the US, shipping some 4 million barrels per day. Wilkinson says a levy on US ethanol is another option being considered. In Australia, the government was disappointed not to win an exemption from the new tariffs, something Trump said last month he would seriously consider. However, Prime Minister Anthony Albanese said it would be counterproductive for Australia to respond with tariffs of its own.

Tariffs and escalating trade tensions are a form of economic self-harm and a recipe for slower growth and higher inflation. They are paid by the consumers. This is why Australia will not be imposing reciprocal tariffs on the United States.

Other countries facing a significant hit from the Trump tariffs include Brazil, Mexico, and South Korea. However, the new charges have been welcomed by a US steel industry association, which said the measures would supercharge domestic production. Investors are less sure, with US stocks shedding more than $4 trillion in value over recent weeks amid concerns about the trade war.