President Donald Trump's tariffs on steel and aluminum imports have entered into force, finishing all exemptions and imposing a 25%duty.
Although Trump argues that this movement will boost US production, critics warn that they will raise consumer prices and hurt industries that depend on metal imports.
The American Iron and Steel Institute welcomed the measure, with President Kevin Dempsey stating: “Aisi applauds the president's actions to restore the integrity of the rates in steel and implement a robust and revitalized program to address unfair commercial practices.”
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The European Union (EU) announced counter-aroncels about 26 billion euros ($ 28.3 billion) of goods in the United States. The United Kingdom Commerce, Jonathan Reynolds, warned that “all options were on the table.” The Prime Minister of Australia, Anthony Albanese, described the “completely unjustified” rates, added: “It is against the spirit of the lasting friendship of our two nations.” Despite this, Australia will not impose retaliation tasks.
Canada, the largest steel and aluminum exporter to the United States, plans to retaliate but “does not seek to increase tensions,” according to the Minister of Energy, Jonathan Wilkinson. Unlike 2018, when sizes were granted, this time, the Trump administration has ruled out exemptions.
Industries that depend on imported metals are preparing for higher costs. Michael Dimarino, who directs the tool of the manufacturer of Linda aerospace pieces, said: “If I have higher prices, I transfer them to my clients. They have higher prices, they transmit it to the consumer. ” The American Automotive Policy Council warned that revoking exemptions “will add significant costs” to car manufacturers.
Economist Bill Reinsch said: “Protects [the steel and aluminium] Industries, but harms later users of their products by making them more expensive. “
Securities markets reacted abruptly. The S&P 500 fell 2.7% on Monday, its worst fall since December, with more decreases on Tuesday. The FTSE 100 of the United Kingdom, CAC 40 of France and the Dax of Germany also fell.
Oxford Economics degraded its growth prognosis of the United States from 2.4% to 2%, stating: “Despite the reduction, we still hope that the US economy will exceed the other important advanced economies in the coming years.”
Initially, Trump threatened with double tariffs on steel and 50% Canadian aluminum, but retreated after Ontario suspended 25% of electricity positions in US exports. However, Canada remains subject to rates of 25%, keeping tensions high.