U.S. President Donald Trump announced on Sunday that he will implement new 25% tariffs on all steel and aluminum imports into the United States. This move represents another significant escalation in his ongoing trade policy overhaul. Trump, addressing reporters aboard Air Force One en route to the NFL Super Bowl in New Orleans, stated that the new tariffs on metals will be announced on Monday.
He further revealed plans to unveil reciprocal tariffs on Tuesday or Wednesday, effective almost immediately. These retaliatory tariffs will be applied to all countries, mirroring the tariff rates imposed by each nation on U.S. goods. 'And very simply, it's, if they charge us, we charge them,' Trump explained regarding the reciprocal tariff strategy. Major suppliers of steel to the U.S. include Canada, Brazil, and Mexico, followed by South Korea and Vietnam, according to government and American Iron and Steel Institute data. Canada, with its abundant hydropower resources, is by far the largest supplier of primary aluminum metal to the U.S., accounting for 79% of total imports during the first 11 months of 2024. Canadian Innovation Minister Francois-Philippe Champagne emphasized the importance of Canadian steel and aluminum to key U.S. industries, including defense, shipbuilding, and the automotive sector, in a post on X (formerly Twitter).Trump also stated that while the U.S. government would permit Japan's Nippon Steel to invest in U.S. Steel, it would not allow this investment to reach a majority stake. 'Tariffs are going to make it very successful again, and I think it has good management,' Trump commented on U.S. Steel. During his first term, Trump imposed tariffs of 25% on steel and 10% on aluminum, but later granted several trading partners duty-free exemptions, including Canada, Mexico, and Brazil. Mexico is a significant supplier of aluminum scrap and aluminum alloy. Former President Joe Biden subsequently negotiated duty-free quota arrangements with Britain, the European Union, and Japan. The impact of Trump's announcement on these existing exemptions and quota arrangements remains unclear. Quebec Premier Francois Legault expressed concern on X, highlighting that Quebec exports 2.9 million tons of aluminum to the U.S., representing 60% of their needs. He questioned whether they would prefer to source supplies from China and called for the renegotiation of the free trade agreement with the United States as soon as possible.Steel mill capacity utilization surged above 80% in 2019 following Trump's initial tariffs but has since declined due to China's dominance in the steel sector, leading to lower steel prices. A Missouri aluminum smelter revived by the tariffs was idled last year by Magnitude 7 Metals. Trump stated that he would hold a news conference on Tuesday or Wednesday to provide detailed information about the reciprocal tariff plan, adding that he had first hinted at these tariffs on Friday to ensure 'that we're treated evenly with other countries.' The new U.S. president has long criticized the EU's 10% tariffs on auto imports, which are significantly higher than the U.S. car rate of 2.5%. He frequently asserts that Europe 'won't take our cars' despite the substantial volume of cars shipped from Europe to the U.S. each year. Conversely, the U.S. enjoys a 25% tariff on pickup trucks, a vital source of profit for Detroit automakers like General Motors, Ford, and Stellantis' U.S. operations. According to World Trade Organization data, the U.S. trade-weighted average tariff rate is approximately 2.2%, compared to 12% for India, 6.7% for Brazil, 5.1% for Vietnam, and 2.7% for European Union countries. In a separate interview with Fox News, Trump stated that Canada's and Mexico's efforts to secure U.S. borders and curb the flow of drugs and migrants are insufficient ahead of a March 1 tariff deadline. Trump has threatened to impose 25% tariffs on all Mexican and Canadian imports unless these two major trading partners take more decisive actions. He had temporarily paused the tariffs until March 1 after some initial border security concessions from both countries, including Mexico's pledge to deploy 10,000 National Guard troops to its border and Canada's deployment of new technology and personnel, along with new anti-fentanyl measures. Asked if Mexico's and Canada's actions were sufficient, Trump replied, 'No, it's not good enough,' Trump said. 'Something has to happen, it's not sustainable, and I'm changing it.'
TRADE POLICY TARIFFS STEEL ALUMINUM CANADA MEXICO DONALD TRUMP US ECONOMY
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: heraldmalaysia - 🏆 24. / 51 Read more »
Source: paultan - 🏆 22. / 51 Read more »
Source: therakyatpost - 🏆 14. / 59 Read more »
Source: theSundaily - 🏆 25. / 51 Read more »
Source: malaymail - 🏆 1. / 86 Read more »
Source: theSundaily - 🏆 25. / 51 Read more »