Trump raises 25% inch on steel and aluminum

Trump raises 25% inch on steel and aluminum

The US President Donald Trump on Monday imposed.

goals of the new customs fees

Although the United States receive most of their steel from Canada, Brazil and Mexico, the tariffs are mainly - albeit indirectly - against China. China is the largest steel producer in the world, but America imports very little steel directly from this country.

effects on the market

The tariffs on steel, which were introduced during Trump's first term and continued by his successor Joe Biden, led to American importers changed their sources of supply. Nevertheless, the Chinese steel is present in the USA, even if it is imported via detours and sometimes incorrectly declared.

Consumption and meaning of steel and aluminum

The United States is no longer the production -oriented economy of the past, but still consume tens of million tons of steel and aluminum annually. Steel is a crucial element in numerous industries, from consumer goods such as cars and household appliances to large infrastructure projects such as skyscrapers, oil platforms and pipelines, bridges and streets. Aluminum is just as important and is used in products such as cans, cars and commercial aircraft as well as in important infrastructures such as high -voltage lines.

consequences of the new tariffs

The increase in tariffs could drive the production costs of many, unless all of these products get up, since both imported and domestic steel becomes more expensive. Aluminum manufacturers could increase prices because the competition decreases by low price imports.

market analysis and import sources

The costs and the weight of the transport of steel and aluminum have traditionally gave the domestic producers an advantage over imports. US steelworks produce about three times as much steel as is imported here. After the introduction of tariffs to steel and aluminum in 2018, imports fell temporarily and domestic production increased temporarily. Nevertheless, many buyers found it necessary to continue to obtain cheaper imports from other countries.

trade wars and reactions

The tariffs also led to a trade war, the American goods with counter -tariffs and increased prices for other consumer products. Buyers who had previously moved into steel from customs -based countries such as China turned to steel producers in other markets, especially Canada, which is now the largest source of American steel imports.

long -term effects on industry

between 2017, the year before the tariffs, and 2019, steel infusion fell by 10.2 million tons or 27%. Local steel production rose, but only by 6.8 million tons or 7.5%. However, the initial achievement of domestic production was short -lived, since both domestic production and imports in 2020 decreased due to pandemic.

further measures and developments

A civil servant of the Trump administration stated that the new tariffs aim to eliminate loopholes and numerous exceptions that enabled some importers to avoid existing systems. Trump announced that this week will hold a press conference to introduce new mutual tariffs.

Recently, Trump also introduced an additional inch of 10% to all imports from China. China reacted quickly to certain chips and metals with its own tariffs. Despite these measures, Trump has also started to suspend some of these tariffs, including the tariffs for goods worth 800 $ 800 or less, while a persecution system is being developed.

This story was updated with further context and developments.