Vietnam Insider — The U.S President Donald Trump has officially doubled tariffs on steel and aluminum imports from 25% to 50%, according to a proclamation he signed on Tuesday. The new tariffs take effect immediately, with the United Kingdom being the only country exempt from the hike.
The tariff escalation has sparked renewed concerns about the global economy. The Organisation for Economic Co-operation and Development (OECD) warned Tuesday that the trade war is contributing to a global slowdown, with growth projected to hit its weakest pace since the COVID-19 pandemic.
In its latest outlook, the OECD downgraded growth forecasts for most G20 economies and emphasized that reducing trade tensions is essential to restoring investor confidence and maintaining price stability. “Countries need to lower trade barriers,” said OECD Chief Economist Álvaro Pereira. “Otherwise, the growth impact is going to be quite significant. This has massive repercussions for everyone.”
The warning comes amid increased pressure from Washington for trade partners to accelerate negotiations. The White House confirmed Tuesday that it has sent reminders to countries affected by Trump’s “reciprocal” tariffs, which are under a self-imposed 90-day pause set to expire in early July.
Despite promises of imminent trade agreements, the UK remains the only nation to have reached a deal so far. Tensions with other key trade partners, including China and the European Union, continue to rise.
On Friday, Trump accused China of “totally violating” its trade agreement with the United States. Beijing quickly countered the claim, accusing Washington of breaching the deal and vowing to defend its interests. Earlier this month, the two countries had agreed to temporarily ease tariffs, but that truce now appears increasingly fragile.
Meanwhile, the European Union criticized the latest tariff hike, calling it a setback for planned trade discussions. In a statement on Monday, the EU expressed “strong regret” over the U.S. move, warning it undermines efforts to resolve trade disputes constructively.
Adding to the uncertainty, the legality of Trump’s broader tariff policy remains in question. A federal appeals court recently allowed the tariffs to stay in place temporarily, just one day after the U.S. Court of International Trade ruled the implementation method was unlawful.
However, White House officials signaled that the administration may pursue alternative legal strategies to sustain the tariffs.
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Source: Vietnam Insider