U.S. tariffs on steel, aluminum spark strong backlash across the world

 Canadian Prime Minister Justin Trudeau said the tariffs were "unacceptable." Canada's response, if needed, would be firm and clear, he said at an artificial intelligence summit in Paris.

 European Commission President Ursula von der Leyen joined the condemnation, saying the 27-nation bloc would take "firm and proportionate countermeasures." U.S. Vice President JD Vance said he would discuss trade and economic issues with von der Leyen at the AI summit in Paris on Tuesday.

 The move will simplify tariffs on the metals, Trump told reporters. "It's 25 percent without exceptions or exemptions," he said. "That's all countries, no matter where it comes from, all countries."

 The biggest impact will be on aluminium, used in transport, construction and packaging, with net imports accounting for around 82 percent of U.S. requirements, according to Morgan Stanley.

 The U.S. aluminium premium over the global benchmark on the London Metal Exchange has shot up by a quarter since Friday to 35 cents per pound and has surged by 60 percent since Trump was elected.

 "Aluminium capacities would have to be massively expanded in a short period of time to replace even a portion of the imports with domestic production," said analyst Volkmar Baur at Commerzbank.

 Trump said on Monday he would announce reciprocal tariffs over the next two days on all countries that impose duties on U.S. goods, and said he was also looking at tariffs on cars, semiconductors and pharmaceuticals.

 Asked about threats of retaliation by other countries against his new tariffs, Trump said, "I don't mind." No updated guidance on timing for those had been provided by the White House by Tuesday afternoon.

 The U.S. Capitol Building in Washington, D.C., the United States. /VCG

 Ready to retaliate

 Von der Leyen warned on Tuesday that U.S. tariffs on steel and aluminum imports from the EU will trigger countermeasures. "Unjustified tariffs on the EU will not go unanswered," von der Leyen said in a statement. "The EU will act to safeguard its economic interests. We will protect our workers, businesses and consumers."

 Addressing members of the European Parliament in Strasbourg on Tuesday, European Commissioner for Trade and Economic Security Maros Sefcovic said that the EU will respond "firmly and proportionately" to the tariffs imposed by the U.S.

 "In our opinion the tariffs are unjustified, because they will lead to an increase in prices and inflation," Sefcovic said. Describing the move as a "lose-lose scenario," he warned that the tariffs were "economically counterproductive."

 German Chancellor Olaf Scholz reaffirmed EU's stance on countermeasures. "If the U.S. leaves us no other choice, the EU will respond with a united position," he said in a speech to the Bundestag on Tuesday.

 The American Chamber of Commerce to the EU, representing U.S. companies active in Europe, also criticized the move as harmful to jobs, prosperity and security on both sides of the Atlantic.

 "The damage will extend beyond just the steel and aluminum sectors, impacting all businesses that rely on these materials throughout the supply chain," it said in a statement.