Description: President Donald Trump has announced new executive order which would impose 25% tariffs on aluminum and steel imports into the US. He also added to his statement by saying that adequate and reciprocal steps would be taken when EU countries are concerned in terms of counter tariffs. The three largest countries which export steel and aluminum are Canada, Brazil and Mexico, closely followed by South Korea and Vietnam. The imposition of new 25% tariffs has been announced as part of Donald Trump’s foreign economic policy to bolster the US industrial economy with the strengthening of exports.
Impact: The additional imposition of 25% of tariffs only raised trade tensions between the US, Mexico, Canada and Europe most recently. Trump’s aggressive foreign policy looks to disrupt trade partnerships between US and its closest allies as the unilateral goal of strengthening the US economy could be perceived as cost ineffective in terms of policy. Canada, Mexico and European countries have also pledged on countermeasures which could cause severe fluctuations in the global stock market with fluctuating prices on the stocks at companies which delved with the tariffed products. Trump’s conditioned and assertive economic foreign policy could alienate the US from its closest allies in times of severe geopolitical turmoil.