US President Donald Trump has taken another aggressive step in his trade war. On Wednesday, he doubled tariffs on steel and aluminum imports. At the same time, he called Chinese President Xi Jinping “extremely hard to make a deal with.”
On his Truth Social platform, Trump posted, “I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!”
US Targets China With High Tariffs
Earlier, on April 2, the US hit Chinese goods with a 145% tariff. In response, China imposed 125% tariffs on American products. Although both countries agreed to pause the escalation in May, new tariffs on other countries may still take effect by July 9.
Meanwhile, Trump’s move to raise metal tariffs from 25% to 50% triggered global concern. The increased duties affect several US trading partners.
OECD Warns of Economic Slowdown
As global trade tensions grow, world leaders met in Paris under the Organisation for Economic Cooperation and Development (OECD). The 38-nation group discussed the economic impact of Trump’s policies.
According to OECD’s chief economist Alvaro Pereira, “Trade, consumption and investment have been affected by the tariffs.” He added that “the US economy will suffer the most.”
EU, Canada, and UK Push Back
In response to the doubled tariffs, the European Union said it “strongly regrets” the decision. The EU warned that the move “undermines ongoing efforts to reach a negotiated solution” and hinted at possible retaliation.
Similarly, French Trade Minister Laurent Saint-Martin advised restraint. He stated, “We have to keep our cool and always show that the introduction of these tariffs is in no one’s interest.”
Likewise, Canada, the biggest supplier of metals to the US, condemned the action. It called the tariffs “illegal and unjustified.”
Meanwhile, the UK managed to avoid further penalties. After a meeting between Trade Secretary Jonathan Reynolds and US officials, a British spokesperson said, “We’re pleased that as a result of our agreement with the US, UK steel will not be subject to these additional tariffs.”
Mexico Seeks Exemption
Elsewhere, Mexico’s economy minister Marcelo Ebrard also spoke out. He said the US exports more steel to Mexico than it imports. “It makes no sense to put a tariff on a product in which you have a surplus,” Ebrard noted. Therefore, Mexico will request an exemption.
Since 80% of Mexico’s exports go to the US, the country is particularly vulnerable in this trade conflict.
World Leaders Urge Quick Solutions
Meanwhile, the Group of Seven (G7) — including the US, UK, Canada, France, Germany, Italy, and Japan — met for separate trade talks. On the sidelines, German Economy Minister Katherina Reiche said, “We need to come up with negotiated solutions as quickly as possible, because time is running out.”
Moreover, US Trade Representative Jamieson Greer and EU Trade Commissioner Maros Sefcovic are set to meet to avoid further levies before July 9.
In addition, White House Press Secretary Karoline Leavitt confirmed that the US has sent letters to governments, asking for proposals ahead of the deadline.