US steel and aluminum tariffs take effect
Kyiv • UNN
The US has imposed 25% tariffs on steel and aluminum imports, affecting allies and economic rivals. Alcoa Corp warns of threats to jobs and rising prices.
U.S. President Donald Trump's 25% tariffs on steel and aluminum imports took effect on Wednesday, UNN writes, citing Bloomberg.
Details
The latest U.S. tariffs, which were applied without exception, took effect after a tumultuous day in the White House, when Trump threatened to double metal tariffs for Canada to 50%, but backed down when Ontario agreed to abandon plans to introduce a surcharge on the price of electricity going to the U.S., reducing the risk of a tariff-induced recession that sent U.S. markets tumbling.
Trump continued to impose tariffs on metals despite a last-minute wave of lobbying by stakeholders in the U.S., including the country's largest aluminum producer, Alcoa Corp. The company warned that the tariffs would jeopardize tens of thousands of jobs while raising prices for Americans who are already feeling the squeeze on their family budgets.
The U.S. President acted with the support of some local industry leaders who say protectionist measures could boost profits for American manufacturers and bring jobs back to the steel and aluminum industries from abroad.
Metal tariffs are applied worldwide, affecting economic rivals as well as close U.S. allies, including not only the European Union, but also Australia, South Korea, and Japan. China, which was clearly not the target of the latest tariff salvo, did not respond immediately.
Aluminum rose 0.3% on the London Metal Exchange after the introduction of tariffs, while hot-rolled coil - a key steel product - rose 0.4% on the Shanghai Futures Exchange. Stocks were little changed, and the Asian benchmark index was treading water. U.S. stock futures held higher, helped by Trump's earlier comments at a business roundtable in which he downplayed concerns about the U.S. economy that deepened the sell-off on Wall Street.
Tariffs on steel and aluminum are part of Trump's plan to create significant barriers around the U.S. economy, steps he deemed necessary to restore balance to a global trading system that is "fleecing" the nation. However, his hesitation in fulfilling some of his obligations has raised doubts about his determination, the publication points out.