DJT Increases Tariffs on Steel and Aluminum to 25%
Donald Trump increased tariffs on imported steel and aluminum to 25% as of midnight.
He removed his 2018 exemptions from such tariffs. These are separate from his previously announced tariffs against imports from Canada, Mexico and China.
Trump planned to impose 50% tariffs on steel and aluminum from Canada, but backed off to 25% after Canada’s Ontario province suspended its announced 25% surcharge on electricity it provides to Michigan, Minnesota and New York, where Canadian power supplies about 1.5 million Americans.
The EU promptly announced retaliatory tariffs on steel, aluminum, textiles, home appliances and agricultural products which will take effect 1 April 2025. Trump intends to hit imports from the European Union, Brazil and South Korea with “reciprocal” tariffs beginning 2 April 2025.
The UK announced it will not retaliate in response to this set of tariffs, and will instead pursue a trade agreement with the USA. UK government estimates about 5% of UK steel exports and 6% to 10% of aluminium exports go to the USA.
Top exporters of steel to the USA are Canada, Mexico, Brazil, South Korea and Japan. Although China is the largest steel producing country, only a small fraction of the steel imported into the USA comes from there. Chinese steel tends to be lower grade.
Most of the aluminum imported by the USA comes from Canada.
Click here for more details.
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