President Donald Trump is testing the US economy’s mettle with its latest tariffs. *Taps mic* Is this thing on?
Trump revealed on Sunday that he intends to impose a 25% tariff on aluminum and steel imports. “Any steel coming into the United States is going to have a 25% tariff…Aluminum, too,” he told reporters while aboard Air Force One on Sunday, according to NPR.
The tariffs will include imports from Canada and Mexico, Trump said. Both countries recently struck deals with the US to delay across-the-board tariffs of 25%.
Imports accounted for 23% of all finished steel used in the US last year, according to American Iron and Steel Institute estimates. The US imported $31.7 billion worth of steel from nearly 80 countries, and $17.7 billion of aluminum from about 90 countries last year, according to government data.
Canada is the largest exporter of steel and aluminum to the US. Mexico and Brazil are other major steel exporters, while the United Arab Emirates and China are the other two top aluminum producers.
At their onset, the tariffs “could damage demand,” but “in the longer term, we can see investment coming through,” James Campbell, an analyst at CRU, told CNBC.
American metal seems to be a real winning issue for politicians. Trump already enacted steel and aluminum tariffs during his first term. President Joe Biden then imposed tariffs on foreign steel and aluminum that was being routed through Mexico.
Trump also teased an announcement later this week for “reciprocal tariffs.” CNN reported last week that those reciprocal tariffs could fulfill “a long-held desire” by Trump to match the taxes other countries impose on US goods.
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