Trump announces 25% tariffs on all steel and aluminum imports

President Donald Trump ordered a 25% import tax on all steel and aluminum entering the United States in a massive expansion of existing trade barriers.

Tariffs that increase the cost of importing metals into the US come despite warnings of retaliation from some political Canada’s Leader – America’s largest metals supplier – other countries.

US companies relying on imports also sparked concerns, but Trump said his plans would boost domestic production.

He warned that there are no exceptions, saying it was “simplifying” the rules, which are scheduled to come into effect on March 4th.

“This is a big deal and the beginning to enrich America again,” Trump said.

“Our country needs to be made in America, not in foreign land,” he added.

When asked if tariffs could raise consumer prices, the US president replied, “It will ultimately be cheaper.”

“It’s time for our great industry to return to America… this is the first of many,” he adds, with other tariffs focusing on medicines and computer chips. It suggests that it can be done.

The US is the world’s largest importer of steel, counting Canada, Brazil and Mexico, and is the top three suppliers.

Canada alone accounted for more than 50% of aluminum imported into the US last year. If tariffs are enforced, they are expected to have the biggest impact on Canada.

Prior to the announcement, Ontario Premier Doug Ford accused Trump of “changing goal posts and certain disruptions and putting the economy at risk” as the province is based on much of Canada’s steel production. .

A Canadian steelmaker lobby group has called on Canadian government to retaliate against the US “quickly,” but Kodi Blois, a leading parliamentary member of Canada’s governing liberal party, has said his country has traded with the US. He said he was looking for ways to reduce the relationship.

“This completely overturns a very strong partnership,” he told BBC Newshour ahead of the official order.

Meanwhile, stocks of major US steelmakers rose in anticipation of orders on Monday, with Cleveland Cliff prices jumping nearly 20%. The prices of steel and aluminum also jumped.

Many other market reactions have been muted considering that they negotiate a record of postponed tariffs, or exemption from rules, reflecting questions about how serious Trump is about his plans. I did.

During his first term in 2018, Trump announced a 25% tariff on steel and 15% aluminum, but ultimately negotiated a carve-out in many countries, including Australia, Canada and Mexico. did.

“It’s like a 2018 replay,” said Douglas Irwin, a professor of economics at Dartmouth University.

“The biggest question is whether this is a negotiation tactic or whether he just doesn’t want to talk to other countries and really wants to help the steel industry like that.”

Last week, Trump ordered a 25% import duties on all products in Canada and Mexico, but only delays the 30-day plan. He also brought a new US tax of 10% on all Chinese products coming into the US, prompting retaliation from China.

Customs duties are domestic taxes imposed on goods when they enter the country, proportional to the value of the import.

The prospect of higher tariffs on imports into the US is that, with regard to many world leaders, it makes it more expensive for businesses to sell goods in the world’s largest economy.

Taxes are central to Trump’s economic vision. He sees them as a way to grow the US economy, protect jobs and increase tax revenue.

However, many manufacturers in the US use steel and aluminum in their products, and now facing the possibility of additional costs, there are concerns about its effectiveness.

Industry groups from construction to can makers warned of the hit.

Trump’s first term in office has raised the average US steel and aluminum prices by 2.4% and 1.6%, respectively, despite many exemptions, despite many exemptions, according to the US International Trade Commission. Ta.

Stephen Moore, a senior fellow at the Heritage Foundation, a Washington-based conservative think tank who advised Trump’s campaign on Trump’s economic issues in 2016, said the effectiveness of tariffs on steel and aluminum that creates jobs. He said he doesn’t think it is a way to do it. of the first term.

He thought the plan was “about attracting the rest of the world’s attention” while Trump was “fatally serious” about trade.

“Everything that Donald Trump does in Washington is a negotiation tactic,” he said.

Trump officials said the latest move aims to stop countries like China and Russia from avoiding tariffs by routing low-cost products through other countries.

The US president said he is introducing new standards in North America that require aluminum to be “melted and poured” and “smelted and cast.”

Nick Iacobella, a spokesman for the prosperous American coalition that represents steel makers and supports tariffs, said his group is most concerned about a surge in steel imports from Mexico above the level agreed in 2019. He said.

However, he noted that Canada is sending far more goods to the US than it imports. This is the trade deficit, an important issue for Trump.

“There is still an imbalance between Canada and the US business relationship that needs to be addressed,” he said.

He added: … (IS) Both these countries (Canada and Mexico) are abusing their ties with the US, and we’re going to do something about it. ”