US President Donald Trump announced on Friday that he will double the current tax rate of tax on steel imports into the United States to 50% which is double the current rate.
Donald Trump claimed he had a “major announcement” to make at a US Steel facility in West Mifflin, Pennsylvania. The US president declared he will raise the tariff to save American steelworkers in front of a cheering audience.
“We are going to be imposing a 25% increase. We’re going to bring it from 25% to 50%, the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States. Nobody’s going to get around that,” he said.
Industry leaders informed Trump that they preferred a 50% tariff hike, despite the president’s declaration that he was considering a 40% tariff.
“At 25% they can sorta get over that fence. At 50% nobody’s getting over that fence,” Trump remarked.
The president took to Truth Social and posted, “It is my great honor to raise the Tariffs on steel and aluminum from 25% to 50%, effective Wednesday, June 4th. Our steel and aluminum industries are coming back like never before. This will be yet another BIG jolt of great news for our wonderful steel and aluminum workers. MAKE AMERICA GREAT AGAIN!”
When Trump announced sweeping 25% tariffs on all imports of steel and aluminum on March 12, the American auto industry was shocked, and Canada immediately retaliated. Additionally, the European Union retaliated by announcing duties that it later revoked.
Trump claimed that if he hadn’t taken action to impose tariffs, American steelmaking would have vanished, and he praised his tariffs on Friday for protecting the US steel sector. According to him, plants would have shut down and all steel would have come from elsewhere.
Tariffs might increase the cost of a vital component for American manufacturing and construction, two sectors Trump has stated he wants to assist, even though they may have provided much-needed support to the American steel industry.
Since the 25% tariff was announced in March, spot prices for domestically supplied steel have gone up because American producers no longer had to worry about as much competition from imported steel.
According to a 2023 analysis by the International Trade Commission, US production increased slightly in 2018 when Trump imposed some steel tariffs during his first term. However, it caused the cost of vehicles, tools, and machinery to rise and reduced those industries’ output by more than $3 billion in 2021. It’s possible that the expenses exceeded the advantages.
Trump raised tariffs on imported steel by utilising a law known as Section 232, which grants the president the power to impose greater tariffs on the grounds of national security.
According to US Commerce Department figures, the US imported $31.3 billion worth of iron and steel last year (iron and steel are grouped together in government data.) With $7.6 billion worth of iron and steel shipped to the US, Canada was the leading supplier.
During his speech on Friday, Trump also praised the deal he signed that permits Nippon Steel, Japan to acquire a majority share in US Steel.