Trump's Tariff Hikes: A Gamble on Domestic Jobs and Global Markets

President Trump has increased tariffs on steel and aluminum imports to 25%, aimed at creating US factory jobs. His policy shift removed previous exemptions and includes future tariff plans on the EU, Brazil, and South Korea. Countermeasures have been announced by the EU, and the economic impact is being scrutinized.

In a decisive policy shift, President Donald Trump raised tariffs on steel and aluminum to 25% to stimulate job creation in American factories. The move, effective from April 2, removes all previous exemptions and continues Trump's broader strategy to disrupt global commerce.

The EU responded swiftly, announcing $28 billion in countermeasures that will impact not just metals but textiles, home appliances, and agricultural goods starting April 1. European Commission President Ursula von der Leyen emphasized these steps in response to U.S. actions worth $28 billion.

However, economic analysts warn of potential drawbacks. The higher tariffs may lead to increased prices and investment hesitation among companies. While Trump's policies have driven some international automakers like Volvo and Honda to consider expanding in the U.S., domestic manufacturers grapple with the fallout of higher raw material costs.

(With inputs from agencies.)