In a move that has sent shockwaves through global markets, President Donald Trump has reignited trade tensions with the imposition of sweeping tariffs on steel and aluminium imports. This new policy enacts a substantial 25%  tariff on these metals, showing no mercy for allied nations – a stark departure from previous trade practices seen under President Obama and Biden. Since his inauguration, Trump has repeatedly vowed to rewrite the rules of global trade,  emphasising protectionist policies alongside strict new regulations on immigration and foreign investments. On February 13, 2025, President Trump revealed his latest trade policy initiative, doubling down on his signature “America First” economic doctrine. 

“America comes first last?”
A question that encapsulates the American people as  Trump enforces protectionist trade policies  

“Access to our market is a privilege, not a right.” Trump’s controversial philosophy, proclaiming that “America will no longer tolerate unfair trade practices,” directly targets major trading partners like China, Canada, Mexico, the UK and the European Union. This is in response to growing concerns over the rising U.S. trade deficit, with a particular focus on the potential national security risks posed by reliance on foreign supply chains. As a result, the “Fair and  Reciprocal” Plan has now taken shape, with tariffs being the cornerstone of a new era of economic confrontation. The  25% tariff on steel and 10% on aluminium struck purposefully close to home, targeting both America’s neighbours,  Canada and Mexico, while also dealing a heavy blow to the UK. British steel exports, a critical component of the UK  manufacturing sector, now face significant price increases when entering the U.S. market, putting jobs and industry competitiveness at risk. The UK government has condemned the move, calling it an “unwarranted economic attack”  on British industry. UK steel manufacturers, already grappling with high energy costs and Brexit-related trade complexities, now face further uncertainty as their U.S. market access shrinks. British trade officials have expressed frustration at the lack of exemptions, warning that these tariffs could cause long-term damage to the transatlantic trade relationship. Meanwhile, on the other side of the globe, the 25% tariffs on Chinese imports hit the core of the world’s second-largest economy, affecting billions of dollars in goods, ranging from electronics to machinery. These economic barriers have transformed long-standing trade partnerships into a battleground for concessions, becoming the foundation of Trump’s vision to ultimately alter the traditional course of global trade. Critics have argued that these tariffs could backfire – “this is déjà vu,” as highlighted by Harvard economist Kenneth Rogoff. “The last trade war led to job losses in U.S. agriculture and manufacturing. This could be worse.” In this complex balancing act, the question lingers: will America truly emerge as a global leader, empowered by self-reliance, or will this strategy lead the U.S. down a path of economic isolation?  

The response: global backlash and retaliation
Swift – and Fierce Answers from Key US Trading Partners  

Canada’s Prime Minister, Justin Trudeau, labelled the move as “An unjustified attack on North American trade,” vowing immediate retaliatory measures on U.S. agricultural and automotive products. In response, Canada has decided to give the U.S. a ‘taste of their own medicine,’ mirroring 25% tariffs on $107 billion worth of U.S. goods. This will impact a wide array of products including agricultural items, automotive parts, and consumer goods. Trudeau has labelled these tariffs as a shield for Canadian interests and industries, warning that the U.S. tariffs could “put [American] jobs at risk, potentially  shutting down American auto assembly plants and other manufacturing facilities.” The European Union has escalated the trade war further, announcing counter-tariffs on a range of American exports, including whiskey, motorcycles, and technology products. “This is an economic escalation we were hoping to avoid,” said European Commission President Ursula von der Leyen, emphasising that the EU won’t bow down to pressure. While the EU claims to be easing trade tensions by lowering tariffs on U.S. car imports, it finds itself in a hefty paradox – imposing tariffs on Chinese-made electric vehicles that directly impact Elon Musk’s company Tesla, which relies on its Shanghai factory for the  European market. In response, Tesla has sued the European Commission, arguing the move unjustly penalises the company despite being a driving force in Europe’s green transition. This contradiction in the EU’s response cross-examines its preliminary intention of whether it is truly striving for stability or strategically reshaping the EV market to favour European automakers. Meanwhile, China has vowed to “take necessary steps” to protect its interests, potentially restricting rare earth exports crucial to U.S. industries. With these global trade disputes escalating, the stakes for economic stability and diplomacy have never been higher. 

The Road Ahead: A Divided Nation
The U.S. navigates the repercussions of Trump’s trade policies 

While Trump’s supporters argue in favour of tariffs, believing that they will strengthen the American industry, critics anticipate that another trade war will skyrocket inflation. Under President Biden, the U.S. experienced a significant decline in inflation, with the average year-over-year rate dropping from 9.1% in June 2022 to 4.95% by the end of 2023.  In contrast, during President Trump’s first term, the average year-over-year inflation rate was 2.46%. These figures highlight the potential economic impact of the new tariffs, which could reverse the progress made in reducing inflation and increase costs for consumers. Analysts predict that the Democratic party, along with U.S. trade allies, will explore strategies to counterweight the possible economic fallout. Whether this move will be beneficial for the U.S. economy or lead to another costly trade battle remains to be seen in this game of chess. However, we can prove one thing as certain – Trump’s return to hardline trade policies has already reignited global tensions, with the world economy bracing itself for the impacts.