The Blubber

White House Economic Adviser Hassett has said: Trump wants to fight inflation by increasing labor supply and lowering aggregate demand.

Leaders in Europe and Canada have vowed to respond if Donald Trump moves forward with plans to impose tariffs on their steel and aluminum exports.

European Commission President Ursula von der Leyen said the action would provoke "firm and proportionate countermeasures," while Canadian Prime Minister Justin Trudeau promised to "stand up for" Canadian workers and industries.

Their remarks follow Trump's decision to impose a 25% tariff on steel imports and a 10% tariff on aluminum, ending exemptions for key allies such as Canada and the European Union. The move marks a significant escalation in trade restrictions.

Trump defended the tariffs as a way to strengthen U.S. manufacturing. "This is a big deal—this is the beginning of making America rich again," he said while signing the proclamation, which takes effect on March 12. "Our nation needs steel and aluminum made in America, not in foreign lands," he added.

The U.S. is the largest importer of steel globally, with Canada, Brazil, and Mexico as its top suppliers. Last year, more than half of the aluminum imported into the U.S. came from Canada alone.

The tariffs are expected to increase the cost of importing these metals into the U.S., raising concerns for American businesses that depend on them and for foreign governments that fear the impact on their economies.

Canada is expected to be the hardest hit by the tariffs. Trudeau called the proposed measures "unacceptable" but expressed hope that negotiations with the Trump administration would lead to a resolution without the need for retaliation.

"If it comes to that, our response will be firm and clear," Trudeau said. "We will stand up for Canadian workers and industries."

European Commission President von der Leyen echoed the sentiment, saying, "Unjustified tariffs on the EU will not go unanswered."