Trump tariffs on aluminum, steel draw strong backlash

Trump tariffs on aluminum, steel draw strong backlash

By GT staff reportersPublished: Feb 12, 2025

US President Donald Trump's decision to impose a 25 percent tariff on all steel and aluminum imports "without exceptions or exemptions" has drawn strong reactions from major US trading partners, with some of its traditional allies vowing firm countermeasures. 

This adds to growing global trade uncertainties as the Trump administration continues to wield the "tariff stick," breaking the fundamental principles of global trade, a Chinese trade expert said on Tuesday, refuting claims that Chinese steel and aluminum are at the heart of the tariffs by pointing out they target all US imports.   

After repeated threats, Trump on Monday US time signed proclamations raising tariff rates on steel and aluminum to 25 percent. A White House official confirmed the measures would take effect on March 4, Reuters reported.

"It's 25 [percent] without exceptions or exemptions. That's all countries, no matter where it comes from, all countries," Trump said, according to Reuters.  

Strong reaction

The move immediately sparked harsh criticism and pledges of countermeasures from major US trading partners. European Commission president Ursula von der Leyen said on Tuesday that the bloc will respond with "firm and proportionate countermeasures," according to a statement released by the European Commission on Tuesday.

"I deeply regret the US decision to impose tariffs on European steel and aluminum exports. Tariffs are taxes - bad for business, worse for consumers. Unjustified tariffs on the EU will not go unanswered - they will trigger firm and proportionate countermeasures. The EU will act to safeguard its economic interests. We will protect our workers, businesses and consumers," she said in the statement.

EU trade commissioner Maroš Šefčovič also spoke about US tariffs in the European Parliament on Tuesday, calling them "economically counterproductive," "bad for businesses, worse for consumers," and "raising costs for [US] businesses and fueling inflation," the Guardian reported.

He said the bloc was "assessing the scope of the measures announced overnight," but "will be responding in a firm and proportionate way with countermeasures."

German Chancellor Olaf Scholz said on Tuesday that "If the US does not give us any other choice, the EU will respond as one. As the largest market in the world, with 450 million citizens, we have the strength to do so. But I hope that we are spared the misguided path of tariffs and countertariffs. In the end, trade wars always cost both sides prosperity," the Guardian reported.

Spanish Prime Minister Pedro Sanchez on Tuesday has assured that he will defend, together with the EU, the interests of Spanish companies and workers in the face of the "trade war" opened by the US government which, in his opinion, will not benefit "anyone," according to a report by europapress.es.

Canada's Prime Minister Justin Trudeau called the tariffs "unacceptable".  

Canadian Innovation Minister François-Philippe Champagne said in a post on X on Tuesday that steel and aluminum tariffs on Canada, the US' closest ally, would be totally unjustified. 

"Canadian steel and aluminum support key industries in the US from defense, shipbuilding, energy to automotive... We will continue to stand up for Canada, support our workers, and defend our industries as we have always done and always will," Champagne said.

Meanwhile, some of the US' major trading partners are trying to find a deal. Australian Prime Minister Anthony Albanese told reporters on Tuesday that he has spoken to President Donald Trump and "presented Australia's case" for an exemption from the 25 percent tariff on aluminum and steel, according to the Xinhua News Agency. 

Indian Prime Minister Narendra Modi is preparing additional tariff cuts ahead of a meeting this week with Trump that could boost American exports to India and avoid a potential trade war, government officials said, Reuters reported on Monday.

"These countries made prompt responses because the US' latest move will have a negative impact on their trade and industries. In addition, this indicates that allies or not, the US government is inclined to leverage tariffs on countries that may have the so-called damage to the country's economy and industry," Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Tuesday.

While the US claims it is protecting its domestic steel and aluminum industries, it is actually shielding outdated and uncompetitive sectors, Gao Lingyun, an expert at the Chinese Academy of Social Sciences in Beijing, told the Global Times on Tuesday.

As a result, the US is blocking products where other countries have a comparative advantage. However, it lacks the conditions at home needed for its steel and aluminum industries to grow, so no amount of protection will make a difference, Gao said.

Even worse, the move, breaking the fundamental principles of global trade, will escalate global trade uncertainty and have a destructive impact on the world's trade order, Zhou warned.

Even as the US tariffs promoted firm responses from many so-called US allies, The New York Times claimed that "China is at the heart of Trump tariffs on steel and aluminum."

In response, Zhou noted that the US move targets all countries, instead of only aiming at China. 

In addition, the scale of China's steel and aluminum exports is relatively limited, Gao noted.

For a long time, the export ratio of Chinese steel has remained at about 5 percent, much lower than that of other steel-producing countries such as Japan and South Korea, an official from China's Ministry of Industry and Information Technology said earlier.

Commenting on the US' steel and aluminum tariffs at a regular press conference on Monday, Guo Jiakun, a spokesperson for the Chinese Foreign Ministry, said that protectionism leads nowhere, and trade and tariff wars have no winners. 

On Tuesday, Chan Kwok-ki, chief secretary for administration of the Hong Kong Special Administrative Region government, criticized the US' tariff measures for not complying with WTO rules on Tuesday, saying that the SAR will file a complaint with the WTO regarding this unreasonable arrangement.

Greater uncertainty

In addition to the steel and aluminum tariffs, Trump said that he would follow Monday's action with announcements about reciprocal tariffs on all countries that impose duties on US goods over the next two days, and said he was also looking at tariffs on cars, semiconductors and pharmaceuticals, according to Reuters.

Zhou noted that the move is just an excuse for the US to reduce its own tariff concession obligations. Under the framework of multilateralism, the US has benefited from tariff concessions for a long time.

More importantly, focusing solely on reciprocity does not necessarily benefit the US' own trade balance, industries or other problems, Gao said, adding that "every country has its own comparative advantages. In the context of international trade, the idea is that I offer what I'm good at, and you offer what you're good at, so we can all benefit."

If the US rigidly insists on absolute reciprocity, it essentially breaks a fundamental principle of international trade, Gao noted.🔺

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World leaders seek common ground at Paris AI summit

World leaders seek common ground at Paris AI summit

China has always participated in global cooperation and governance on AI with a highly responsible attitude

By 

Liu Caiyu

 and Li YaweiPublished: Feb 12, 2025
The Artificial Intelligence (AI) Action Summit, which has brought together global leaders, technology industry executives and top researchers in Paris, held formal talks on Tuesday amid the divergence on the AI governance and regulation, with relevant parties striving to find common ground on rapidly evolving field of AI. On Tuesday, French President Emmanuel Macron and Indian Prime Minister Narendra Modi co-hosted the summit.Vice Premier of the State Council Zhang Guoqing, who attended the summit as President Xi Jinping's special representative, delivered a speech on Monday, during which Zhang said that AI has become an important driving force for the new round of scientific and technological revolution and industrial transformation. China has always participated in global cooperation and governance on AI with a highly responsible attitude, he underlined, Xinhua News Agency reported on Tuesday.

French President Emmanuel Macron (front C) poses for a group picture with world leaders and attendees at the
end of the plenary session of the Artificial Intelligence (AI) Action Summit, at the Grand Palais, in Paris,
on February 11, 2025. Photo: AFP

China, France, Germany and India were among 61 signatories who agreed it is a priority that "AI is open, inclusive, transparent, ethical, safe, secure and trustworthy, taking into account international frameworks for all" and "making AI sustainable for people and the planet."The statement sets an ambition to reduce digital divides by promoting AI accessibility, and ensuring the tech's development is "transparent", "safe" as well as "secure and trustworthy", reported BBC.The US and Britain have not signed the Paris AI Summit's declaration entitled "Statement on Inclusive and Sustainable Artificial Intelligence," per Reuters. The two countries did not immediately explain their reasons for not adding their names to the document, according to the Guardian.At the summit, Modi had called for "collective, global efforts to establish governance and standards that uphold our shared values, address risks and build trust," according to CNA. "Excessive regulation ... could kill a transformative sector just as it's taking off," US Vice President JD Vance told global leaders and tech industry chiefs at the French capital's Grand Palais, per CNA. French President Macron said there was a "need for rules" to govern artificial intelligence, in an apparent rebuff to Vance who had criticized excessive regulation, according to AFP. Amid the global attention on China's AI development, The China AI Safety and Development Association (CNAISDA) hosted a side event titled Progress in AI Technology and its Application on Tuesday, putting China's advancements in AI development, governance measures and its vision for international cooperation into the spotlight. If all countries in the world can leverage their comparative advantages and collaborate effectively based on technological and industrial principles, it would be the optimal choice, Shen Yi, a professor at Fudan University, told the Global Times.Hegemony remains the biggest obstacle in the development of AI. Such cooperation is currently being blocked and separated due to this hegemonic mindset, Shen said. Chinese technology should be treated fairly and objectively. Accusations that attempt to smear the Chinese tech company stem from biased attitudes toward China's development, Zhang Linghan, from China University of Political Science and Law and a Chinese expert on the High-Level Advisory Body on Artificial Intelligence, who is also attending the summit in Paris, told the Global Times.Zhang said China has always advocated enhancing the representation and voices of developing countries in global AI governance, ensuring equal rights, equal opportunities and equal rules for AI development and governance of all countries, carrying out international cooperation and assistance for developing countries, and constantly bridging the intelligence gap and governance capacity gap.According to China's vision, AI has a wide range of possible applications in the future, and it should become one of the core sources of new quality productive forces, and at the same time, the value created by AI must be distributed in a more equitable way in order to realize the benefits of AI for humanity, Shen stressed. Ensuring equal access between countries and between different groups within a country will prevent exacerbating wealth inequality, leading to scenarios where AI "consumes" human opportunities, fostering new technological and power oligarchs, and eroding global security and development, Shen added.🔺

Ceasefire is only way to bring Israeli prisoners home, Hamas official says

By Reuters February 11, 2025

CAIRO, Feb 11 (Reuters) - U.S. President Donald Trump must remember that the only way to bring home Israeli prisoners is to respect the ceasefire between Israel and Hamas, senior Hamas official Sami Abu Zuhri told Reuters on Tuesday.

"Trump must remember that there is an agreement that must be respected by both parties, and this is the only way to bring back the prisoners. The language of threats has no value and only complicates matters," he said.

Trump said on Monday he would propose cancelling the ceasefire and "let hell break out" if all Israeli hostages held by Hamas were not released by Saturday.

Hamas, due to release some hostages gradually under a ceasefire in place since January, has postponed freeing hostages until further notice, accusing Israel of violating the ceasefire's terms by continuing strikes on the Gaza Strip.

Trump has enraged the Arab world by floating a proposal that the United States take over Gaza, move out its more than 2 million residents and transform the territory into the "Riviera of the Middle East".

Trump meets Jordan's King Abdullah on Tuesday for what is likely to be a tense encounter following the U.S. president's Gaza redevelopment idea, including a threat to cut aid to the U.S.-allied Arab country if it refuses to resettle Palestinians.

விளம்பரம்

The forcible displacement of a population under military occupation is a war crime banned by the 1949 Geneva conventions.

The Gaza war, launched after Hamas attacks on Israeli territory in October, 2023, has been paused since mid-January under the ceasefire agreement between Israel and Hamas that was brokered by Qatar, Egypt and the United States.🔺

AI Action Summit in Paris shapes the future of AI amid divergent visions

 AI Action Summit in Paris shapes the future of AI amid divergent visions

World leaders gathered in Paris for the second day of the Artificial Intelligence (AI) Action Summit, where the focus turned to balancing national interests with global cooperation. Representatives from nearly 100 countries, including the US, China, and India, aimed to find common ground on sustainable AI development. However, questions lingered over whether the US would endorse a draft statement promoting an inclusive, human rights-based approach to AI.

French President Emmanuel Macron emphasised Europe’s commitment to clean energy as a cornerstone for AI growth, contrasting it with the US’s fossil fuel-driven strategy. ‘We won’t adopt a ‘drill, baby, drill’ policy,’ Macron said, ‘but instead ‘plug, baby, plug’ into our clean energy resources.’ This stance reflects Europe’s ambition to lead in sustainable AI innovation while addressing the technology’s massive energy demands.

Despite differing energy policies, there was consensus on one point: 2025 is not the year for new AI regulations. US President Donald Trump’s dismantling of his predecessor’s AI safeguards has influenced global perspectives, with Europe opting to streamline its regulations rather than impose new ones. European Commission President Ursula von der Leyen is set to unveil a new AI strategy to simplify rules, deepen the single market, and boost computing investments.

German Chancellor Olaf Scholz urged the EU companies to unite in a collective push for ‘AI made in Europe,’ signalling a desire for regional self-reliance in the face of global competition. Meanwhile, tech executives, including OpenAI CEO Sam Altman, joined the summit’s Business Day, highlighting the private sector’s role in shaping AI’s future. A consortium led by Elon Musk reportedly offered $97.4 billion to acquire the nonprofit overseeing OpenAI, though details remain unconfirmed.

US Vice President JD Vance added another layer of intrigue as the summit progressed. While his primary focus was expected to be AI, reports suggested he might also address the Russia-Ukraine conflict, and this shift in agenda underscores the complex interplay between technology and geopolitics at the summit.

The draft declaration, which calls for avoiding market monopolies and ensuring AI benefits people and the planet, remains a point of contention. While many nations support its principles, the US delegation has not confirmed its stance, casting doubt on the universal adoption of the declaration. Consequently, without unanimous backing, the summit risks failing to establish a unified, sustainable framework for AI’s global development.🔺

DIGWATCH 11 Feb 2025

2

The geopolitics of artificial intelligence will be in focus at a major summit in France

PARIS (AP) — By  SYLVIE CORBET and KELVIN CHAN

February 9, 2025

The geopolitics of artificial intelligence will be in focus at a major summit in France where world leaders, executives and experts will hammer out pledges on guiding the development of the rapidly advancing technology.

It’s the latest in a series of global dialogues around AI governance, but one that comes at a fresh inflection point as China’s buzzy and budget-friendly DeepSeek chatbot shakes up the industry.

U.S. Vice President JD Vance — making his first trip abroad since taking office — will attend the Paris AI Action Summit starting Feb. 10, while China’s President Xi Jinping will be sending his special envoy, signaling high stakes for the meeting.

Here’s a breakdown:

Summit basics

Heads of state and top government officials, tech bosses and researchers are gathering in Paris for the two-day summit hosted by French President Emmanuel Macron and Indian Prime Minister Narendra Modi. The event aims to address how to harness artificial intelligence’s potential so that it benefits everyone, while containing the technology’s myriad risks.

European Commission President Ursula von der Leyen is attending, along with company officials from 80 countries, including German Chancellor Olaf Scholz, Canadian Prime Minister Justin Trudeau, OpenAI CEO Sam Altman, Microsoft President Brad Smith and Google CEO Sundar Pichai.

Tesla chief Elon Musk, who attended the inaugural 2023 summit at former codebreaking base Bletchley Park in England, and DeepSeek founder Liang Wenfeng have been invited, but it’s unclear if either will attend.

Panel talks and workshops at the Grand Palais venue on Monday will be followed by a dinner at the Elysee presidential palace for world leaders and CEOs. Leaders and company bosses are expected to give speeches at Tuesday’s closing session.

What’s at stake?

More than two years after ChatGPT ‘s debut, generative AI continues to make astounding advances at breakneck speed. The technology that powers all-purpose chatbots is transforming many aspects of life with its ability to spit out high-quality text, images or video, or carry out complex tasks.

The 2023 summit in the U.K. resulted in a non-binding pledge by 28 nations to tackle AI risks. A follow-up meeting hosted by South Korea last year secured another pledge to set up a network of public AI safety institutes to advance research and testing.

AI safety is still on the agenda in Paris, with an expert group reporting back on general purpose AI’s possible extreme dangers.

But this time organizers are expanding the discussion to more countries, and widening the debate to a range of other AI-related topics. Like previous editions, this summit won’t produce any binding regulation.

“The summit comes at a time when many are trying to position themselves in the international competition,” Macron told reporters, according to La Provence newspaper. “It’s about establishing the rules of the game. AI cannot be the Wild West.”

The deliverables

Organizers are working on getting countries to sign a joint political declaration gathering commitments for more ethical, democratic and environmentally sustainable AI, according to Macron’s office. But it’s unclear whether the U.S. would agree to such a measure.

A public-interest partnership named “Current AI” is to be launched with an initial $400 million investment. The initiative aims at raising $2.5 billion over the next five years for the public-private partnership involving governments, businesses and philanthropic groups that will provide open-source access to databases, software and other tools for “trusted” AI actors, according to Macron’s office.

Macron’s team wants to shift the focus away from the race to develop better-than-human artificial intelligence through sheer computing power and, instead, open up access to data that can help AI solve problems like cancer or long COVID.

“We now have this incredible opportunity to figure out not only how we should mitigate the potential harms from artificial intelligence, but also how we can ensure that it’s used to improve people’s lives,” said Martin Tisné, the summit’s envoy for public interest AI.

Trump’s team

U.S. President Donald Trump has spoken of his desire to make the U.S. the “world capital of artificial intelligence” by tapping its oil and gas reserves to feed the energy-hungry technology. Meanwhile, he has moved to withdraw the U.S. — again — from the Paris climate agreement and revoked former President Joe Biden’s executive order for AI guardrails.

Trump is replacing it with his own AI policy designed to maintain America’s global leadership by reducing regulatory barriers and building AI systems free of “ideological bias.”

The U.S. position might undermine any joint communique, said Nick Reiners, senior geotechnology analyst at the Eurasia Group.

“Trump is against the very idea of global governance,” Reiners said. “It’s one thing to get countries to agree that AI should have guardrails and that AI safety is something worth caring about. But they’ve widened the scope to talk about the future of work and the environment and inclusivity and so on — a whole range of concepts. So it’s hard to imagine getting a widespread agreement on such a broad range of subjects.”

China’s role

Chinese leader Xi is sending Vice Premier Zhang Guoqing, who’s been elevated to the role of Xi’s special representative.

It’s a big step up from the 2023 Bletchley meeting, when the Chinese government sent the vice minister of science and technology. It signifies that Xi wants China to play a bigger role in global AI governance as Trump pulls back, Reiners said.

DeepSeek ’s release last month stunned the world because of its ability to rival Western players like ChatGPT. It also escalated the wider geopolitical showdown between Beijing and Washington over tech supremacy.

Trump said DeepSeek was a “ wake-up call ” for the U.S. tech industry and his AI advisor David Sacks accused DeepSeek of training its model on stolen OpenAI data. The DeepSeek chatbot app now faces investigations, and in some cases, bans in the U.S. and a number of other countries over privacy and security concerns.

Yet the rise of DeepSeek, which built its open source AI model at a fraction of the cost and with fewer chips, also puts China’s interests in line with France’s.

French organizers said “the summit aims at promoting an ambitious French and European AI strategy” as advances in the sector have been led by the U.S. and China. Macron hopes to make room for others, including French startup Mistral, which also uses an open source AI model.

“DeepSeek is being seen as a kind of vindication of this idea that you don’t have to necessarily invest hundreds of billions of dollars in in chips and data centers,” Reiners said.

Transatlantic tensions

Another showdown could involve Brussels, which has long been a thorn in the side of U.S.-based Big Tech companies, cracking down with antitrust penalties against the likes of Google, Apple and Meta. Trump lashed out at last month’s World Economic Forum with “very big complaints” about the EU’s multibillion-dollar fines, calling them a tax on American companies.

More recently, the European Union’s artificial intelligence regulation has met resistance from the companies. The EU recently unveiled a non-binding “code of practice” for its AI Act but Meta’s top lobbyist said the company, which owns Facebook and Instagram, won’t sign up.

The EU guidelines, intended to standardize how the AI Act’s regulations are applied across the 27-nation bloc, are “unworkable” and the continent’s regulatory environment is “pushing Europe to the sidelines,” Chief Global Affairs Officer Joel Kaplan told a Brussels event.🔺