Trump tariffs: Retaliate or negotiate - what will US partners do next?

Published On Feb 11, 2025, 3:23 AM

President Trump's decision to impose a 25% tariff on all steel and aluminum imports has triggered urgency among major US trade partners such as Canada, Mexico, and South Korea, who are scrambling to negotiate deals or exceptions. Canada, the largest supplier of steel to the US, is particularly vocal against the tariffs, labeling them 'totally unjustified'. Meanwhile, Australia seems to be in talks for potential exemption due to the trade surplus with the US. European and UK trade representatives have criticized the tariffs, saying they would severely harm their markets. India, while claiming minimal direct impact, worries about a potential flood of steel in its market due to US restrictions. South Korea is also contemplating negotiations to mitigate the effects of the tariffs. Analysts believe these tariffs may lead to diversified trade patterns, but could provoke retaliatory measures from affected nations in the long run.