President Donald Trump has officially raised tariffs on steel and aluminum imports from 25% to 50%, as he signed the order recently. This marks the second increase in import taxes on these essential materials, used in various products from vehicles to food packaging, since March.
The President asserts that this move will help secure the future of the American steel industry. However, critics argue that such protective measures might severely impact foreign steel producers, incite retaliatory actions from trade partners, and impose significant costs on American manufacturers reliant on these metals.
Even on the day tariffs were increased, many affected businesses were taken aback, hoping the hike was merely a temporary tactic. Notably, the UK received an exemption, maintaining duties at 25%, reflecting ongoing trade discussions between the two nations.
Since Trump’s initial tariffs were introduced, many imports had previously avoided these duties due to exemptions negotiated with allies. However, Trump’s recent reinforcement of tariffs has caused significant concern among Canadian steel manufacturers, with warnings of job losses and industry collapse.
As steel imports saw a 17% dip in April, industry experts anticipate a further decline following this latest tariff implementation. Both Canada and the EU are preparing to retaliate with their own tariffs on American goods amid ongoing negotiations. The uncertainty raises the stakes for US businesses, which could face a fluctuating market as tariffs disrupt supply chains.
Source: www.bbc.com
