Trump tariffs on metal fuel recession fears
By: John Bacon
Joey Garrison
and Doyle Rice
USA Today
..... Canada and the European Union quickly unveiled retaliatory levies on U.S. industrial and farm products after President Donald Trump;s sweeping tariffs on imported steel and aluminum imports took effect, triggering more tremors through financial markets and fueling fears of inflation and recession.
.....
Trump's effort to protect U.S. steel and aluminum producers restored effective global tariffs of 25% on all imports of the metals and also extended the duties to hundreds of products made from the metals.
..... Ramping the trade war up further, Trump said, "of course I will respond" with additional tariffs on EU imports. "The European Union treats us very badly, and they have for years," he added as he met in the Oval Office with Ireland Prime Minister Micheal Martin, whose country is part of the EU.
..... Trump also reiterated that the EU, like all nations, will be subject to his new reciprocal tariffs, set to go in effect April 2, [2025] whereby the U.S. will respond to any country's tariffs on U.S. exports by matching with identical tariffs of the same rates.
.....The president has defended his aggressive use of levies to business leaders in Washington Tuesday, [03/11/2025]
and suggested higher tariffs could be on the way. Speaking before the Business round-table, he touted a "renewed spirit" in the U.S. manufacturing sector because of his tariffs on imports.
.....
"They don't want to pay 25% or whatever it may be," Trump said of companies, referring to the tariff rate he's set on imports form Canada and Mexico as well as on all steel and aluminum. And "the higher it goes, the more likely it is they're going to build" in the U.S.
..... U.S. consumers could see higher prices on a wide range of products due to the tariffs, from fertilizers to printed books and sugar.
..... Those planing vacations could feel an effect too, though it won't be as immediate or noticeable as the rise in prices in other areas.
.....
According ti Steven A, Carvell, a professor of fiance at the S.C. Johnson College of Business at Cornell University, business travel will likely take the biggest hit first. He added that large trade shows such as the annual Consumer electronics Show in Las Vegas could be affected if businesses decide to prioritize exhibiting in other countries.
..... "There will be less cross-border travel and less demand for hotel room nights because of that,' Carvell told USA today. Group travel will be down because of that, meeting maybe.
..... Investors fear that tariffs will low the U.S. economy.
..... J. P. Morgan's chief global economist said Wednesday [03/12/2025] that there is a 40% chance of a U.S. recession in 2025 and a risk of lasting damage to the country's standing as an investment destination if the administration undermines trust in U.S. governance. "where we stand now is with a heightened concern about the U.S. economy," Bruce Kasman told reporters in Singapore on Wednesday. [03/12/2025]
..... economist at Goldman Sachs and Morgan Stanley last week [03/05/2025] downgraded their U.S. GDP growth forecasts and now see growth at 1.7% and 1.5% this year, respectively.
..... Contributing: Reuters