Donald Trump’s trade war has expanded to cover the world, with 25% tariffs on all steel and aluminium imports to the US in effect from today.
The duties were announced in mid-February as stock market investors cheered President Trump‘s ‘America first’ agenda which saw only Mexico, Canada and China come under initial pressure.
While two rounds of tariffs on China have been enacted, 25% duties on some Canadian and most Mexican cross-border trade have been withdrawn until 2 April at the earliest.
The tariffs beginning today are designed to protect US manufacturing and bolster jobs by making foreign-made products less attractive.
They threaten to make the cost of things like cars to soft drink cans – and therefore some drinks – more expensive.
Canada is the biggest exporter of both steel and aluminium to America. However, the White House on Tuesday rowed back on a threat to double the country’s tariff to 50%.
The EU is to retaliate with €26bn of counter tariffs on US goods starting from 1 April, the European Commission said on Wednesday morning.
More on Donald Trump
Related Topics:
Commission president Ursula von der Leyen said she remained open to “meaningful dialogue” with the US.
During Mr Trump’s first term, the bloc countered with charges on products such as bourbon and jeans.
The American tariffs are also a threat to UK steel exports – worth north of £350m annually – with the bulk of that coming from stainless steel.
The business secretary Jonathan Reynolds confirmed on Wednesday morning that while he was disappointed, there would be no immediate retaliation by the UK government as negotiations continue over a wider trade deal with the US.
“I will continue to engage closely and productively with the US to press the case for UK business interests,” he said.
Please use Chrome browser for a more accessible video player
1:04
Feb: Prices to rise for planes, trains and automobiles
Any fall in demand among US customers will leave producers scrambling for new markets, though some could be directed to domestic projects within the UK.
That steel could prove attractive as China, the world’s largest producer of steel, has threatened to limit its exports in response to the Trump tariffs.
Please use Chrome browser for a more accessible video player
0:54
Carney: ‘Canada will win’
President Trump is under growing pressure to row back, particularly in his planned battle with nearest neighbours Mexico and Canada.
Markets have turned on the tariff regime, with jitters about the effects of higher import prices souring the US economy first being seen through the currency and bond markets.
The dollar has lost around five cents against both the pound and a resurgent euro alone in the past few weeks.
Stock markets have joined in, with the combined market value of the broad S&P 500’s constituent companies down by more than $4trn on the peak seen just last month.
The big fear is that the protectionism will push the world’s largest economy into recession – a scenario Mr Trump did not deny was possible during a weekend interview.
Spreaker
This content is provided by Spreaker, which may be using cookies and other technologies.
To show you this content, we need your permission to use cookies.
You can use the buttons below to amend your preferences to enable Spreaker cookies or to allow those cookies just once.
You can change your settings at any time via the Privacy Options.
Unfortunately we have been unable to verify if you have consented to Spreaker cookies.
To view this content you can use the button below to allow Spreaker cookies for this session only.
US firms, already also grappling the complexities associated with an expanding tariff regime, are also letting it be known that they expect damage to their own businesses.
Delta Airlines lowered its first quarter growth forecast on the back of the turmoil this week while US firms are increasingly facing product boycotts.
Travel bodies have also reported a big drop in the number of Canadians crossing the US border, with road trips down by almost a quarter last month compared to February 2023 according to Statistics Canada.
A shirtless man waving a Mexican flag stands atop a burning car in the heart of Los Angeles, as another man throws a traffic cone into the flames and some play drums and shout chants in opposition to immigration officials.
In the background, city hall can be glimpsed through a haze of thick black smoke.
The downtown district of one of America’s biggest cities was a scene of pandemonium and lawlessness as protests, which had previously been mainly peaceful, turned ugly.
Critics of Donald Trump said the president’s extraordinary decision to deploy National Guard troops, defying the wishes of the state’s governor, had inflamed tensions and stoked emotions.
Image: A protester throws a cone into a burning fire in LA. Pic: Reuters/Daniel Cole
The 101 Freeway, the main highway cutting through the downtown area, was also closed down for much of the day as police and protesters faced off, with flash bang devices sending some people scattering.
Bottles and other projectiles were hurled towards police, who responded by using tear gas and rubber bullets.
It was this chaos, his critics say, that Donald Trump wanted to provoke.
More on Los Angeles
Related Topics:
Image: California Highway Patrol officers try to dodge rocks being thrown. Pic: AP/Ethan Swope
Trump’s decision to call in 2,000 National Guard troops, several hundred of whom were on the streets of LA on Sunday, was taken without consultation with the California governor and LA mayor, and marked an extraordinary escalation by the president.
The military arrived on Sunday morning and was ordered to guard federal buildings, after two days of protest against Immigration and Customs Enforcement (ICE) officers.
As part of Trump’s closed border policy, ICE has been ordered to find, detain and deport as many illegal immigrants as possible, and it was these raids that stoked the first signs of protest on Friday into the weekend.
Image: Smoke rises as the National Guard clashed with protesters in downtown Los Angeles.
Pic: Reuters/Daniel Cole
By midday Sunday, the military was surrounded by protesters outside the Metropolitan Detention Centre in downtown LA. It was here that many immigrants had been held before being shipped off to detention facilities.
The walls and floors are covered in expletive-ridden graffiti, reading f*** ICE.
The Los Angeles police soon split the crowd and drove a wedge between the National Guard and the crowd.
California Governor Gavin Newsom has called Donald Trump’s acts those of a “dictator, not a president”.
Image: A police officer fires a soft round in Los Angeles. Pic: AP Photo/Eric Thayer
Image: Los Angeles Metro Police officers strike protesters during unrest in the downtown area of the city.
Pic: Reuters/Daniel Cole
He’s formally requested that the Trump administration withdraw the National Guard. The White House say the military will remain there until order is restored. Five hundred marines are still on standby.
Los Angeles Police Department police chief Jim McDonnell, asked whether the National Guard was needed, said: “This thing has gotten out of control.”
He said that although the LAPD would not initially have requested assistance from the National Guard, the disorder had caused him to reevaluate his assessment.
Image: US correspondent Martha Kelner is reporting from Los Angeles
Several people were arrested.
Sky News witnessed a young woman, who called herself Gabriella, riding her motorbike at speed towards a line of police officers.
The National Guard will be deployed to Los Angeles after “riots” in response to immigration raids extended into a second day.
California Governor Gavin Newsom confirmed that the Trump administration is deploying “2,000 soldiers” to Los Angeles after local police used tear gas, stun guns, and riot shields to push back immigration protesters on Saturday.
Demonstrations began outside the Los Angeles Federal Building in the downtown area of LA on Friday after officials from Immigration and Customs Enforcement (ICE) carried out raids in the area.
On Saturday, several dozen protesters were involved in police standoffs in Paramount, a city south of LA.
Mr Newsom warned in a post on X: “The federal government is sowing chaos so they can have an excuse to escalate. That is not the way any civilized country behaves.”
He described the deployment as “purposefully inflammatory” and claimed it will “only escalate tensions”.
President Donald Trump hit back at Mr Newsom in a post on his social media platform Truth Social on Saturday.
More on Los Angeles
Related Topics:
“If Governor Gavin Newscum, of California, and Mayor Karen Bass, of Los Angeles, can’t do their jobs, which everyone knows they can’t, then the Federal Government will step in and solve the problem, RIOTS & LOOTERS, the way it should be solved!!!,” he wrote.
Mr Trump’s defence secretary Pete Hegseth claimed that active duty marines would also be mobilised if “violence continues”.
Image: A Los Angeles County Sheriff’s deputy holds back protesters in Paramount, Los Angeles on Saturday. Pic: Reuters
Image: Fireworks amid police standoffs with protesters in Paramount, Los Angeles on Saturday. Pic: Reuters
LA mayor Karen Bass said that amid the recovery from this year’s wildfires, “many in our community are feeling fear” following “recent federal immigration enforcement actions” across LA County.
“We’ve been in direct contact with officials in Washington, D.C., and are working closely with law enforcement to find the best path forward,” she said.
“Everyone has the right to peacefully protest, but let me be clear: violence and destruction are unacceptable, and those responsible will be held accountable.”
Reports the guard would be deployed to LA came earlier on Saturday, from Mr Trump’s border tsar Tom Homan on Fox News.
Image: Tear gas is fired at protesters in Paramount on Saturday. Pic: Reuters
Image: Fires amid immigration protests in Paramount, Los Angeles County on Saturday. Pic: AP
44 arrested in Friday raids
At least 44 people were arrested on suspicion of immigration violations during raids on Friday, with crowds of around “1,000 rioters” forming around the building before some “assaulted law enforcement officers, slashed tires, and defaced taxpayer-funded property”, according to the Department of Homeland Security.
The raids saw street vendors and day workers rounded up across Home Depots, a clothing factory, and a warehouse, Salas of Chirla (The Coalition for Humane Immigration Rights of Los Angeles) said.
In a statement on Saturday, White House press secretary Karoline Leavitt said “violent mobs” had “attacked ICE officers and federal law enforcement agents carrying out basic deportation operations”.
She described such activity as “essential to halting and reversing the invasion of illegal criminals into the United States”.
Ms Leavitt said Californian politicians were “feckless” and had “completely abdicated their responsibility to protect their citizens”, prompting Mr Trump’s order to send in the guard.
Image: Police fire stun grenades at protesters outside the Los Angeles Federal Building on Friday. Pic: Reuters
Image: A protester holds up a sign to police outside the Los Angeles Federal Building on Friday. Pic: Reuters
Protests spread to second city
On Saturday, protests spread to the Paramount area, where there is a significant Latino population, after demonstrators spotted ICE employees in a Home Depot car park they appeared to be using as a base.
Law enforcement officers faced off protesters at a road junction at around 5pm where a car had been set on fire earlier in the day.
The roads were pictured strewn with trolleys and rubbish bins set on fire, as gas canisters and fireworks were also set off.
Image: A car burns on Atlantic Boulevard in Paramount, Los Angeles on Saturday. Pic: Reuters
Image: The car burnt out in Paramount on Saturday. Pic: Reuters
Commenting on Saturday’s protests, the Los Angeles County Sheriff’s Office said: “It appeared that federal law enforcement officers were in the area, and that members of the public were gathering to protest.”
Vice President JD Vance claimed that “insurrectionists” were seen “carrying foreign flags” and “attacking immigration enforcement officers” in Paramount.
“One half of America’s political leadership has decided that border enforcement is evil,” he posted on X. “Time to pass President Trump’s beautiful bill and further secure the border.”
Image: Mexican and US flags are flown by protesters in Paramount. Pic: Reuters
Image: ‘Death to ICE’, Immigration and Customs Enforcement, is written on a bin in downtown Los Angeles on Friday. Pic: Reuters
The clashes come amid Trump’s nationwide crackdown on illegal migration.
As soon as he was re-elected in January he set a target of arresting 3,000 suspected illegal migrants per day – and promised to lock down the US-Mexico border.
Elon Musk’s social media post claiming Donald Trump is in files relating to the disgraced paedophile financier Jeffrey Epstein has been removed.
The tech billionaire made the allegation on X as he traded blows with the US president in a dramatic public row.
In the post, which now appears to have been deleted, Musk said: “@realDonaldTrump is in the Epstein files. That is the real reason they have not been made public.
“Mark this post for the future. The truth will come out.”
He gave no evidence for the claim, which was dismissed by the White House – with the post disappearing from his social media platform by Sunday.
Users clicking on the message – first posted on Thursday – were instead greeted with: “Hmm…this page doesn’t exist. Try searching for something else.”
Epstein killed himself in his jail cell in August 2019 while awaiting trial on charges of sex trafficking minors.
Image: File pic: Reuters
Musk and Mr Trump’s relationship broke down publicly on Thursday, just days after the Tesla and SpaceX chief executive left his role as a special government employee.
In a fiery exchange, Musk posted a series of messages on X criticising the president’s signature tax and spending bill as a “big ugly spending bill”.
President Trump posted on Truth Social, saying Musk had been “wearing thin” and claimed he “asked him to leave” his government position – something Musk denied.
Musk then hit back with his claim about the US president appearing in the Epstein files.
Press secretary Karoline Leavitt dismissed the comment in a statement.
“This is an unfortunate episode from Elon, who is unhappy with the One Big Beautiful Bill because it does not include the policies he wanted,” she said.
“The president is focused on passing this historic piece of legislation and making our country great again.”
Spreaker
This content is provided by Spreaker, which may be using cookies and other technologies.
To show you this content, we need your permission to use cookies.
You can use the buttons below to amend your preferences to enable Spreaker cookies or to allow those cookies just once.
You can change your settings at any time via the Privacy Options.
Unfortunately we have been unable to verify if you have consented to Spreaker cookies.
To view this content you can use the button below to allow Spreaker cookies for this session only.