Trump's steel and aluminum tariffs have the greatest impact on ten nations, including India.
Global trade is expected to be disrupted by the announcement by former US President Donald Trump of a new 25% tax on all imports of steel and aluminum. Potential economic disruptions could result from the tariffs, which are anticipated to affect some of the biggest exporters of these metals to the US.
The following 10 nations were the largest suppliers of steel and aluminum to the United States in 2023, according to The Financial Times, and these tariffs are probably going to have the biggest impact on them. Here are the potential effects on each nation, and why India, which is ranked eighth, has a lot on the line.
1. $25.26 billion in Canada
Canada will be most negatively impacted by the tariffs because it is the biggest exporter of steel and aluminum to the US. It is anticipated that Canadian businesses and policymakers will oppose these restrictions, perhaps requesting exclusions or punitive measures, given the two nations' robust trading connection.
China continues to be one of the US's largest exporters of steel and aluminum despite current trade concerns. China's attempts to diversify its export markets may be accelerated by the additional tariffs, which will only increase tension between the two powerful economies.
Despite ongoing trade tensions, China remains one of the biggest suppliers of steel and aluminum to the US The new tariffs will only add to the strain between the two economic giants, potentially accelerating China's efforts to diversify its export markets.
3. $13.28 billion for Mexico
The US supply chain is closely linked with Mexico's steel and aluminum industries, which are major trading partners under the USMCA (United States-Mexico-Canada Agreement). For businesses that operate in both nations, higher tariffs may cause manufacturing disruptions and raise production costs.
4. $5.71 billion from South Korea
South Korea, a significant source of premium steel used in the automobile industry, may encounter significant difficulties if the tariffs raise the cost of manufacture. Given that businesses like Hyundai and Kia depend on exporting to the US, the tariffs may compel them to increase prices or change their manufacturing methods.
5. With $4.87 billion, Brazil
Due to the importance of its steel exports to the US, Brazil's mining and manufacturing industries may be negatively impacted by the tariffs. To make up for losses, Brazil, one of the biggest producers of iron ore worldwide, may look to form new trading partnerships.
6. Europe: $4.49 billion
Germany, which produces some of the most cutting-edge steel in the world, is probably going to be severely impacted. Given that its engineering and automotive sectors rely on exports to the US, the tariffs may raise prices for German businesses and impede industrial growth.
7. $4.38 billion for Taiwan
Trade flows could be seriously disrupted in Taiwan, a major supplier of aluminum components and specialty steel. Manufacturers on the island may have to find new export markets or pay higher prices.
8. India: $4 billion
India will be affected by these tariffs because it is the eighth-largest supplier of steel and aluminum to the United States. Given that India's steel sector is already up against international competition, increased US tariffs may result in:
a decline in shipments to a major market.
higher production costs for Indian companies that depend on imports from the US.
more attempts to diversify trade, with India potentially boosting exports to Southeast Asia and Europe.However, if US purchasers search for suppliers other than China and Canada, India may also gain.
9. $3.22 billion for Japan
High-tech steel and aluminum goods from Japan are vital to sectors like electronics and the automotive industry. Increased tariffs may raise the cost of Japanese goods on the US market, which might damage exports and decrease demand.
10. $2.73 billion for Italy
Italy, one of the top exporters of steel in Europe, may suffer economically if further tariffs lower US demand. The US-EU trade relationship may be further strained if the European Union takes countermeasures in retaliation.
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