The transatlantic confrontation, initially sparked over aluminium and steel, now has the potential to expand into a much wider trade war, placing enormous stress on the worldwide aluminium supply chain.
Shots fired
The most recent flare-up was fuelled when US President Donald Trump sent a letter about a new 30 per cent tariff on everything the EU and Mexico export to the US, effective August 1. This follows the recent doubling of the Section 232 tariffs on aluminium and steel from 25 to 50 per cent, a decision that already is sending shockwaves in the metals market.
In a swift reaction, European Commission President Ursula von der Leyen Von der Leyen clarified that the bloc’s ‘anti-coercion instrument’, designed for crisis response, remains inactivated, stating, “The ACI is created for extraordinary situations. We are not there yet.” But she made it clear that Brussels will not back down.
