President Trump is ready to move forward with sweeping prices on foreign steel and aluminum on Monday, and re -develop a policy that pleases domestic metal makers from his first term, but other US industries Distressed and provoked trade wars with allies on several fronts.
The President said that 25 % of the revenue that they will impose on foreign steel and aluminum will be welcomed by domestic steel makers, who argue that they are struggling to fight against cheap foreign metals. – As he did during Mr Trump’s first term, the US is lobbying to protect the metal makers, and Trump’s officials agree that a strong domestic metal department is essential for US national security. –
But plenty of disputes will be invited in the rates. It is likely that they will rank US allies, such as Canada and Mexico, who mostly provide US metal imports. And they can produce retaliation on US exports as well as pushbacks from US industries that use metals to create cars, food packaging and other products. After the implementation of prices, these sectors will face significantly higher prices.
This happened in the first term of Mr Trump, when he slapped 25 % prices on foreign steel and aluminum. While he and President Biden eventually surpassed these rates on most large metal suppliers, they were often replaced by other business barriers like quotas. Studies show that although measures helped us the metal makers, they damaged the broader economy, as they increased the prices of many other industries.
Mr Trump appeared to be ignoring the date on Sunday. When he flew to the super bowl in Air Force One, he said he had planned to impose 25 % tariffs on steel and aluminum on all imports. He also said that he would move forward with so -called mutual rates, which would increase the US tariff rates this weekend, to meet foreign countries.
“Very straightforward, if they charge us, we charge them,” he said.
In his office, on his first day, the President made several detailed reports about two dozen trade initiatives, aimed at reducing his upcoming trade measures. But he did not wait for the results.
In his three -week position, the president has already threatened greater taxes globally than his entire first term, when he has more than $ 300 billion from foreign solar panels, washing machines, metals and China over $ 300 billion Imposed taxes.
Since taking office, Mr. Trump has imposed an additional 10 % additional tax on all products from China, and he has come within a few hours of imposing clean taxes on Canada and Mexico that bring our tariff rates. Not seen at this level since the 1940s. Together, these tricks may have affected more than $ 1.3 trillion.
Mr Trump has also said in recent days that he has planned to impose revenue on Europe, Taiwan and other governments as well as several major industries such as copper, steel, aluminum, pharmaceuticals and semiconductions.
The President has already implemented global prices on steel and aluminum. In his first term, the president imposed prices on foreign steel and aluminum globally, angry allies like Mexico, Canada and the European Union.
Mr Trump reached agreements with Australia, South Korea and Brazil, and returned some of the barriers in Canada and Mexico when he signed a revised trade agreement with the United States. The Biden administration later reached agreements with the European Union, the UK and Japan to return some of its trade sanctions.
According to the American Iron and Steel Institute, the largest supplier of steel in 2024 was Canada, followed by Brazil, Mexico, South Korea and Vietnam. Canada is also a major aluminum supplier to the United States, followed by the United Arab Emirates, Russia and China.
The United States imports very little steel or aluminum directly from China directly, as Chinese exports have long been blocked by anti -dumping and subsidy prices. But some say China’s additional steel production is still flooding in other markets and is reducing global prices, which has damaged US metal makers in other markets.
The reservations that have been kept for the domestic steel industry are also not enough to secure the luck of US steel, which is a famous Pennsylvania company that has felt financial struggle and agreed to get through Japan’s Neptune Steel What is The integration was blocked by President Biden, who said he wanted to be an American Steel to be an American company.
US steel makers welcomed prices. In a statement on Sunday, the president of the American Iron and Steel Institute, Kevin Dempsey, said the group welcomed Mr Trump’s ongoing commitment to a strong American steel industry, for US national security and economic prosperity. Essential. “
The president of the legal firm Valley Ren and a former official in the first Trump administration, said that the president was once again on his promise of imposing taxes globally and raising taxes on steel and aluminum imports. Looking at the criticism of. National Security. “
He said that new revenue will be included in the existing taxes related to steel and aluminum, and it remains to be seen whether there will be an exception, for example for Canada and Mexico.
The fact that the United States has previously implemented 25 % metal prices means that economists have huge data about how they have affected the US industries.
A study For example, through non -Partisan International Trade Commission, it has been found that steel and aluminum prices have increased imports, and inspired steel and aluminum consumers to buy more US metals against foreigners. Is The increase in demand further increased metal prices, and allowed US metal makers to increase their production, resulting in the US $ 2.25 billion in steel and aluminum additional production in 2021.
Studies show that this policy was an important negative aspect. The high prices of steel and aluminum translated high prices for the flowing industries that buy these metals to make other items. More costs were especially painful for industrial machinery, car parts and hand tools companies.
Overall, industries that use steel and aluminum have seen a decrease of $ 3.48 billion as a result of revenue – far more than the steel and aluminum makers.
Some of the US metal industries say that Levy has not gone enough. They argue that metal imports from other countries like Mexico began to increase immediately after returning the tariff as part of the US-Mexico-Canada deal signed in 2020.
The chairman of the Alliance for the prosperous United States, Zach Motal, who supports metal prices, said these trends are proof that the United States also needs to increase revenue to protect the flow of industries, not less. Has been done
“It is important to build a market for all the inputs in the supply chain and then the final product,” he said.
Mr Motel runs a precision manufacturer near Chicago, who operates steel and aluminum to make products for aerospace, medical and telecom industries. He said that initially he saw the rise in steel and aluminum prices at prices, but then prices were lagging behind and new sources of supply were gathered. “The prices did what they were,” he said.
Chad Bone, a senior fellow at the Patterson Institute for International Economics, said Mr Trump’s move raised many questions about whether the administration would eventually exclude some countries or industries from the move. “Do the president want to discuss the deal, just as he did with South Korea, Brazil and Argentina? If they were targeted, China, Mexico, Canada and the European Union revenue against US exports. Will the retaliation take action once again?
“It makes things feel like 2018,” he said.
Other industries are also concerned about being trapped in a crossfire, and tariffs are targeted as a retaliation in other countries. China on Monday imposed revenge taxes on US exports, in response to which Mr Trump imposed revenue on China last week because of his role in Fantinel Trade. Mexico, Canada and the European Union have prepared a list of all US products in response to US actions they can attack on their own prices.
For example, in response to metal prices, the European Union imposed a 25 % tariff on the US Whiskey. US and European governments discussed an agreement to temporarily suspend these rates, but its term will expire soon. If there is no other deal, the European Union will double the tariff on April 1.
Chris Songar, chief executive of the United States Esty Spring Council, who represents the whiskey industry, said in a statement that the tariff would have “devastating results” of 3,000 small distilies in the United States.
“We are emphasizing that the United States and the European Union move forward to find a resolution,” said Mr Songar. “Our great American whiskey industry is at stake.”
