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President Donald Trump imposed 25 % tariffs on all steel and aluminum imported to the United States on Wednesday, the move threatens to increase prices for Americans on a wide range of consumers and industrial equipment.
This is the latest Salvo in Trump’s multi -dimensional tariff war, which aims to correct trade imbalances and reject domestic manufacturing.
Hours before imposing the latest prices, Trump overturned the risk of doubling steel and aluminum rates from Canada, which is the largest source of imports for metals. Instead, from there, steel and aluminum will be subject to 25 % levy.
“This can increase,” Trump said on Tuesday, 25 % tariffs of steel and aluminum sent to the United States in a program organized by the Business Round Table. “The more it runs, the more likely they will build,” he said.
After Ontario’s premiere Dougford agreed to stop the electricity surcharges for US consumers, Trump supported his threat to double Canada’s steel and aluminum tariff rates.
Ford and US Trade Secretary Howard Lotank announced that he would meet with Canadian Finance Minister Dominic Lee Black on Thursday, to renew the free trade deal known as USMCA.
Tariffs on Steel and Aluminum for the first time in Trump’s second term that tariffs have been implemented to all countries.
The European Union retaliated only after hours, announcing that it would impose duty on US goods worth 26 billion euros ($ 28 billion) in response to “blasphemy” taxes. He said the retaliatory measures were “sharp and proportional” A statement.
Prior to Wednesday, Trump only implemented prices imposed on China, Mexico and Canada in this term. In the case of Mexico and Canada, if they comply with the USMCA, businesses can avoid paying revenue during April 2.
Shortly before his implementation, Australian Prime Minister Anthony Albaniz criticized the prices as “fully blasphemous” and “friendship against the sentiment of our two countries”, but said that Canberra would not impose any mutual imposition.
“Returments and rising trade tensions are a kind of loss of economic self -harm and a prescription of gradual growth and more inflation,” he said in a statement. “That is why Australia will not impose mutual rates on the United States.”
Steel prices were started in Trump’s first administration, and the former president, which continued by Biden, resulted in the transfer of US importers to other sources.
However, the Biden administration allowed exemptions from the duties of US allies, including Canada, Mexico, Japan and South Korea. The latest process of Trump changes that the United States has no exception to any countries’ imports of steel. The same applies to aluminum, which increases from 10 % to 25 %.
China is the only country whose aluminum and steel will be targeted at more than 25 % rates. The reason for this is that a 20 % tariff on the board of the board on Chinese imports was already in effect on Wednesday, and the top 25 % of steel and aluminum tariffs will be competed, which will increase the total tariff rate on steel and aluminum to 45 %.
The United States directly imports very little steel from China, so far the world’s largest steel producer.
Nevertheless, the Chinese steel ranks second in the United States. Some are purchased by foreign countries and go to the United States. And some of them are labeled wrong through different channels and are recovered.
From cars to devices, steel and aluminum are important inputs
Although Trump aims to hurt the Canadian economy by imposing high steel and aluminum prices on them, the move is also at risk of loss of US economy.
According to data from the US Department of Department, overall, the United States imported $ 31.3 billion last year and $ 27.4 billion from steel aluminum. (Government data groups iron and steel together.)
Canada was a high source of Iron, Steel and Aluminum last year, which was sent to the United States to the United States, the United States imported $ 11.4 billion worth of aluminum and $ 7.6 billion worth of iron.
With aluminum, other top foreign sources sent to the United States include China, Mexico and the United Arab Emirates. According to last year’s US trade data, Steel, Brazil, Mexico and South Korea are high sources.
Aluminum and steel equipment are widely used in a wide range of goods. Returns on both metals can significantly increase prices for Americans.
For example, cars are hundreds, if not thousands, pounds steel and aluminum. So, when Trump said his “highly” high auto tariffs would “shut down” the auto industry in Canada, they are more likely to back down on US auto production, because the extent to which North American car supply is connected in China.
Equipment, machinery, infrastructure, medical devices, cans and power lines are all commonly used products that also rely on steel and aluminum.
Before Wednesday, the possibility of high taxes on steel and aluminum resulted in the rapid rise in market trade -traded spot prices for metals, Cabin’s analyst Phil Gabus said.
He said that the price of domestic steel is more than 30 % in the last two months, while the domestic price of aluminum has increased by about 15 %.
Many major industrial consumers can be prevented from hike in prices due to long -term contracts, which has caused them to be locked, but should steel and aluminum prices remain in their place, they can expect if the products they are buying come from domestic mills.
And prices are not only importing raw products, but will also affect the price of imported parts using metals. For example, the cost of aluminum bumper or radiator purchased by an automaker from a Canadian or Mexican parts supplier will increase.
The story has been updated with additional reporting and context. CNN’s Chris Icedor, Angus Watson, Edward Sazirus and James Legend supported the reporting.
