US steel and aluminium tariffs doubled to 50% 4 hours ago Natalie Sherman BBC News US President Donald Trump has signed an order doubling tariffs on steel and aluminium imports from 25% to 50%.
Trump has said the measures, which come into effect on Wednesday, are intended to secure the future of the American steel industry.
During his first term, Trump imposed tariffs of 25% on steel and 10% on aluminium, citing a law that gives him authority to protect industries considered vital to national security.
His office said it was “pleased” that the trade talks had protected UK steel from the latest duties.
“The introduction of 50% tariffs immediately puts the shutters up,” he said.
Tariffs on US aluminum and steel doubled to 50%.
4 hours prior.
Natalie Sherman. .
BBC News.
A directive signed by US President Donald Trump doubles import duties on steel and aluminum from 25% to 50%.
This is the second increase in import taxes since March on the metals, which are essential components of everything from automobiles to canned food.
The measures, which go into effect on Wednesday, are meant to ensure the future of the American steel industry, according to Trump.
Critics contend that the protections could punish American consumers of the metals, cause retaliation from trading partners, and have a devastating effect on steel producers outside the US.
Many of the directly impacted firms could hardly believe the plan was proceeding just hours before he increased the duties, hoping it would be a negotiating ploy or temporary.
Trump claimed the move reflected ongoing trade talks with the US. Despite this, the UK was given a carve-out from the measures, leaving duties on its steel and aluminum at 25%.
Rick Huether, the CEO of Independent Can Co., a Maryland-based company that imports steel from Europe and uses it to make decorative cookie tins, popcorn boxes, and other items, stated, “The question with Mr. Trump is, is this a tactic or is this a long-term plan?”.
He stated that he had halted investments because he was afraid of the sudden changes and that price hikes would cause his clients to turn to paper or plastic boxes as alternatives.
When he said, “There’s a lot of chaos,”.
The US government claims that the US imports more steel than any other country in the world, second only to the European Union, with the majority of the metal coming from South Korea, Canada, Brazil, and Mexico.
During his first term, Trump used a law that grants him the power to defend industries deemed essential to national security to impose 25% steel and 10% aluminum tariffs.
But after the US made trade agreements with allies and gave some imports exemptions at the request of businesses, many imports eventually managed to avoid the duties.
In March, Trump declared that he was dissatisfied with the way the protections had been undermined, thus ending those carve-outs.
He stated his intention to raise tariffs to the point where American companies would be forced to purchase from American suppliers during Friday’s rally at the US Steel factory.
Regarding the 50% rate, he stated, “Nobody’s going to get around that.”. Therefore, no one will be able to steal your industry. At twenty-five percent, they can overcome that obstacle. They are unable to cross the fence at fifty percent. “.”.
European and UK responses.
Prior to Trump’s tariff hike last year, the American Iron and Steel Institute said that imports and the pace of raw steel production in the United States had not changed much as of May.
But compared to March, steel imports decreased by 17% in April. Additionally, companies that sold the metals to the US stated that they anticipated an even more sharp decline in response to Trump’s most recent announcement.
Canada and the European Union were already preparing to retaliate with tariffs on their own American goods after Trump’s actions in March.
Olof Gill, the European Commission’s spokesperson for trade and economic security, told the BBC on Tuesday that the two parties were having frenzied discussions in an attempt to move closer to an agreement.
“We’re negotiating hard to try and make good deals,” he stated.
“We fervently hope that the Americans will reverse this most recent tariff threat, just as they have done with others, but that is still up in the air. “.”.
Trump’s announcement, which was supposed to offer some protection from the March metals tariffs, increased pressure on the UK government to finalize the trade agreement with the US.
On Wednesday, US Trade Representative Jamieson Greer and Trade Secretary Jonathan Reynolds met in Paris.
That UK steel was shielded from the new duties by the trade negotiations was “pleased” by his office.
“We will keep working with the United States to carry out our agreement, which will see the removal of the 25 percent US steel tariffs,” he stated.
The director general of UK Steel, which advocates for steelmakers, Gareth Stace, told the BBC that the 25 percent tariffs imposed in March have already caused orders for his members to be delayed and cancelled.
A 50% tariff, he said, would be “catastrophic” for UK exports to the US, which account for around 7% of total exports.
He stated, “The implementation of 50% tariffs immediately puts the shutters up.”. We will now cancel the majority of our orders, if not all of them. “,”.
Economists said that because of the new policies, prices are rising, which is hurting the US economy as well.
Approximately 1,000 jobs were created in the steel industry by Trump’s first term tariffs, according to a 2020 analysis, but 75,000 jobs were lost in other industries like manufacturing and construction.
This time, Erica York, vice president of federal tax policy at the Tax Foundation, predicted even more severe job losses.
Because they raise the cost of production in the United States, “some of the strongest evidence is against tariffs on intermediate inputs like steel and aluminum, finding them to be much more harmful,” she said. “In particular, doubling down on this kind of tariff is just incredibly dumb. “,”.
Drill Rod and Tool Steels, a small, family-run manufacturing company in Illinois, imports approximately 800,000 pounds of Austrian steel annually, according to Chad Bartusek, director of supply chain management. The steel must meet certain requirements that are not met in the United States.
Mr. Bartusek stated that he was presently awaiting three containers of steel rod, which at the beginning of the year would have been able to enter the US duty-free.
He had budgeted roughly $72,000 for tariff costs as of last week. Instead, a tariff bill of nearly $145,000 is in front of him.
He remarked, “I woke up Saturday morning, looked at the news, and my jaw dropped,” in reference to Trump’s declaration.
Up until a few weeks ago, business had been steady, according to Mr. Bartusek.
Earlier this year, however, his company increased prices by 8 to 14 percent to help offset the new tariff costs. Customers are now placing more cautious orders, so he has had to reduce staff hours.
According to him, “It’s one punch after the other.”. “Hopefully, this will be resolved soon. “,”.
