President Donald Trump's increased tariffs on all US steel and aluminum imports took effect, stepping up a campaign to reorder global trade norms in favor of the US that drew swift retaliation from Europe.
Trump's action to bulk up protections for American steel and aluminum producers restores effective global tariffs of 25 percent on all imports of the metals and extends the duties to hundreds of downstream products made from the metals, from nuts and bolts to bulldozer blades and soda cans.
The European Commission responded almost immediately, saying it would impose counter tariffs on 26 billion euros ($28 billion) worth of US goods from next month.
Close US allies Canada, Britain and Australia criticised the blanket tariffs, with Canada mulling reciprocal actions and British Business and Trade Secretary Jonathan Reynolds saying "all options were on the table" to respond in the national interest.
The run-up to the tariff deadline came with some drama on Tuesday as Trump threatened Canada with doubling the duty to 50 percent on its steel and aluminum exports to the US.
But Trump backed off those plans after Ontario Premier Doug Ford agreed to suspend his province's decision to impose a 25 percent surcharge on electricity exports to the states of Minnesota, Michigan and New York until earlier US tariffs were removed.
A White House spokesperson described the US pressure on Canada as a "win" for the American people.
The US Customs and Border Protection agency cut off imports qualifying for duty-free entry under quota arrangements well before the midnight deadline, saying in a bulletin to shippers that quota paperwork needed to be processed by 4:30 p.m. local time on Tuesday at US ports of entry or the full tariffs would be charged.
European Union chief Ursula von der Leyen has vowed that US tariffs on steel and aluminium “will not go unanswered,” adding that they will trigger tough countermeasures from the 27-nation bloc.
Industry groups hail the return of tariffs
The move was welcomed by US steel producers as restoring Trump's original 2018 metals tariffs that had been weakened by numerous country exclusions and quotas and thousands of product-specific exclusions.
"By closing loopholes in the tariff that have been exploited for years, President Trump will again supercharge a steel industry that stands ready to rebuild America," Steel Manufacturers Association President Philip Bell said in a statement.
"The revised tariff will ensure that steelmakers in America can continue to create new high-paying jobs and make greater investments knowing that they will not be undercut by unfair trade practices," Bell added.
Canadian Energy Minister Jonathan Wilkinson told Reuters that Canada could impose non-tariff measures such as restricting oil exports to the US or levying export duties on minerals, if US tariffs persist.
China remains the number two supplier of aluminum and goods made from aluminum, but already faces high tariffs to counteract alleged dumping and subsidies, as well as a new 20 percent tariff that Trump has imposed over the past month over fentanyl trafficking.
