President Donald Trump announced plans on Sunday to impose 25% tariffs on all steel and aluminum imports, affecting major trading partners like Canada and Mexico, with the tariffs to take effect by Monday afternoon.
“Any steel coming into the United States is going to have a 25 percent tariff. Aluminum, too,” Trump stated, according to The New York Times. “Very simply, if they charge us, we charge them.”
Trump emphasized a strategy of ‘reciprocal tariffs’ that would match duties imposed by other countries, reinforcing his commitment to ‘fair trade.’
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The tariffs aim to bolster domestic production but could lead to higher prices for consumers, raising concerns among economists.
Nevertheless, US stock index futures rose on Monday, buoyed by the tariff announcement, which led to significant gains for steelmakers like US Steel and Cleveland-Cliffs.
While the market reacted positively to the tariff news, economists noted a desensitization to such announcements, suggesting that the tariffs might create volatility but are ultimately seen as a negotiating tool.
Canadian officials have criticized the tariffs, arguing that U.S. manufacturers rely on Canadian aluminum.
This move revives Trump’s previous trade policies from his first term, which had mixed outcomes for domestic steel production.
A detailed outline of the reciprocal tariffs is anticipated later in the week, as tensions around trade continue to escalate.
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