Trump's Tariffs Trigger Global Economic Concerns and EU Response

President Trump's administration maintains a 25% tariff on steel and aluminum imports, without exemptions. The OECD projects this will slow growth in the US, Canada, and Mexico, while increasing inflation. The US economic growth is seen slowing to 2.2% this year and 1.6% next year. Mexico's economy is expected to contract by 1.3% this year and 0.6% next year. Canada's growth rate is projected to slow to 0.7% for both years. Trump has also imposed 20% levies on all imports from China. Tariffs on autos may begin April 2. In response to US tariffs, the European Commission is considering import curbs and export duties on metals, including new scrap metal export duties and a "melted and poured rule." The EU is also considering duties on its own exports of scrap metals. The Commission will make a new proposal by the third quarter this year for a trade measure for steel "based on tariff rate quotas" to replace the existing ones expiring on July 1, 2026. The UK is engaged in discussions with the US regarding a wider economic deal. Around 5% of UK steel exports and 6% of aluminum exports go to the US.