Trump’s 25% tariffs on all steel and aluminum imports go into effect
Donald Trump

Trump’s 25% tariffs on all steel and aluminum imports go into effect


Share this post

President Donald Trump announced on March 11 that he's raising tariffs on steel and aluminum imports to 25%, a move he believes will boost U.S. factory jobs. This decision, though, comes amid growing concerns about the impact of his tariff threats, which have already caused some tremors in the stock market and stoked fears of a possible economic slowdown.

In addition to hiking tariffs, Trump removed all the exemptions from his 2018 tariffs on these metals, and raised the aluminum tariff from 10%. These steps are part of a broader strategy to shake up global trade, which includes separate tariffs on countries like Canada, Mexico, and China. Starting April 2, he plans to introduce “reciprocal” tariffs on imports from the European Union, Brazil, and South Korea.

Trump met with CEOs from the Business Roundtable on March 10, where he argued that these tariffs are pushing companies to invest more in U.S. factories. Despite the recent 8% drop in the S&P 500, which has raised concerns about slowing growth, he seems convinced that the higher tariffs will be key to bringing manufacturing jobs back to America.

On March 10, Trump even threatened a 50% tariff on steel and aluminum from Canada but backed off after Ontario paused plans to impose a surcharge on electricity sold to states like Michigan, Minnesota, and New York.

In many ways, Trump’s actions are an attempt to tie up loose ends from his first term. Though he made significant moves on tariffs back then, the revenue from these taxes didn’t do much to fuel inflation. His 2018 steel and aluminum tariffs were also softened by exemptions—Canada and Mexico avoided the taxes after agreeing to a new North American trade deal, and other countries had import quotas instead. U.S. companies were also allowed to request exemptions if they couldn’t source enough steel from domestic producers.

While Trump believes his tariffs will help U.S. steel and aluminum manufacturers, they could raise costs for industries that rely on these metals as raw materials. Economists have pointed out that the benefits to steel and aluminum producers were often overshadowed by the costs faced by other manufacturers. In fact, the U.S. International Trade Commission reported in 2023 that production losses in industries that use these metals exceeded the gains seen by steel and aluminum makers.

Trump argues that tariffs will ultimately lead to more factories opening up in the U.S., pointing to companies like Volvo, Volkswagen, and Honda, which are considering expanding their U.S. operations. However, the prospect of higher costs, fewer sales, and lower profits could deter some businesses from making those investments. As John Murphy, senior vice president at the U.S. Chamber of Commerce, put it, “If you’re an executive in the boardroom, are you really going to tell your board it’s the time to expand that assembly line?”


Share this post
Comments

Be the first to know

Join our community and get notified about upcoming stories

Subscribing...
You've been subscribed!
Something went wrong
Rihanna Marks 20 Years of Her Debut Album ‘Music of the Sun’

Rihanna Marks 20 Years of Her Debut Album ‘Music of the Sun’

Two decades ago, a teenage Rihanna left her home in Barbados with a dream. At just 17 years old, she released her debut album Music of the Sun on August 29, 2005. Now, twenty years later, Rihanna is celebrating the milestone with gratitude, nostalgia, and fresh surprises for fans. To mark the anniversary, Rihanna shared a moving message on Instagram, reflecting on the moment that changed her life forever. “20 years ago, I left my country, my culture, my food, and family to embark on a journey t


O A

Trump Revokes Secret Service Protection for Harris Ahead of Book Tour

Trump Revokes Secret Service Protection for Harris Ahead of Book Tour

President Donald Trump has cancelled Secret Service protection for Kamala Harris, which had been extended by Joe Biden before he left office, according to one of her advisers. As a former vice-president, Ms Harris was entitled under law to receive six months of security after leaving office in January, which was due to expire in July. Her protection had been quietly extended for another year by a directive signed by her former boss but was revoked by Trump in a memo dated on Thursday, accordin


O A

Apple Music Now Lets You Transfer Playlists From Spotify

Apple Music Now Lets You Transfer Playlists From Spotify

Apple Music's latest feature makes it easier to switch services and juggle multiple music platforms. Apple Music app customers woke up to a new feature Tuesday, although not many know it exists yet.  View this post on Instagram A post shared by New Dope (@newdopehq) Apple Music subscribers can now grab songs or playlists from other music platforms, notably Spotify, and bring them to Apple. The ability to transfer music from other music services is buried in the Music App settings. Init


O A

French Montana & Sheikha Mahra Confirm Engagement

French Montana & Sheikha Mahra Confirm Engagement

French Montana is starting his next chapter in life with a major gesture of love. The rapper proposed to Princess Sheikha Mahra bint Mohammed bin Rashid Al Maktoum with a diamond ring that carries a price tag of more than one million dollars. The piece was created by Eric the Jeweler of Mavani & Co., who worked closely with French for several months before the final design was completed. The ring features an emerald-cut diamond that weighs 11.53 carats and is valued at approximately $1,050,000


O A