Hey everyone! 📣 Here’s some big news from the United States.
On Monday, U.S. President Donald Trump announced that he is putting a 25% tax on steel and aluminum coming into the country. 🏗️🔩 This means that when other countries sell these metals to the U.S., they have to pay extra money. These taxes are called tariffs.
These new tariffs will start on March 4 and will apply to all countries. Trump said, “That’s all countries, no matter where it comes from, all countries.” But he also mentioned that he might think about making an exception for Australia.
So, why is this a big deal? Well, many countries like the European Union 🇪🇺, Canada 🇨🇦, and Mexico 🇲🇽 are not happy about this! They feel these taxes are unfair and could hurt businesses in their countries.
Trump also wants to make sure that steel and aluminum are mostly made in North America. He is putting new rules in place so that other countries can’t get around the new taxes by doing just a little bit of processing in their own country.
These new taxes also include products made from foreign steel and aluminum, like certain types of buildings and parts.
But that’s not all! Trump said he might also put new taxes on countries that put taxes on U.S. goods. He is thinking about taxing cars 🚗, computer chips 💾, and medicines 💊 from other places.
This isn’t the first time something like this has happened. In 2018, Trump put similar taxes on steel and aluminum from Canada, Mexico, and the EU. Those countries then put taxes on U.S. goods like whiskey 🥃, motorcycles 🏍️, and orange juice 🍊.
These taxes can make things more expensive. For example, car companies and soda makers in the U.S. might have to pay more for the metals they need, and then they might raise prices for customers.
Other Countries Plan to Fight Back
Other countries are getting ready to fight back. The European Union said these taxes are unfair and will hurt both the U.S. and other countries. They might take action to protect their businesses.
France 🇫🇷 and Germany 🇩🇪 are also thinking about taking action if the taxes happen. The United Kingdom 🇬🇧 is upset too. People there say these taxes could hurt their steel industry a lot.
Did you know? In 2023, about 23% of the steel used in the U.S. came from other countries, mostly from Canada, Brazil, and Mexico.
Canada supplies most of the aluminum used in the U.S. Canada’s leaders say the new taxes are unfair, and they will respond in some way.
Mexico’s President Claudia Sheinbaum said she will wait for more details but will always defend her country.
Even South Korea 🇰🇷 is worried! They are talking to their steel companies to figure out what to do.
So, what’s going to happen next? We’ll have to wait and see! This could lead to a trade war, where countries put taxes on each other’s goods. Let’s hope they can work things out. 🌍🤝
Reference(s):
Trump raises tariffs on aluminum, steel, sparking widespread outrage
cgtn.com
