Trump imposes sweeping steel, aluminum tariffs
Trump tariffs on Canada, Mexico paused for 30 days
Harvard Professor of Law Mark Wu joins LiveNOW's Andy Mac to help make sense of the recent pause on Canadian and Mexican tariffs.
WASHINGTON - President Donald Trump on Monday removed the exceptions and exemptions from his 2018 tariffs on steel, meaning that all steel imports will be taxed at a minimum of 25%. Trump also hiked his 2018 aluminum tariffs to 25% from 10%.
The moves are part of an aggressive push by the president to reset global trade, with Trump saying that tax hikes on the people and companies buying foreign-made products will ultimately strengthen domestic manufacturing. But the tariffs would hit allies as the four biggest sources of steel imports are Canada, Brazil, Mexico and South Korea, according to the American Iron and Steel Institute.
The other side:
Monday's tariffs almost immediately drew criticism from Canada, the largest source of steel imports. Candace Laing, president and CEO of the Canadian Chamber of Commerce, said that Trump was a destabilizing force in the global economy.
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"Today’s news makes it clear that perpetual uncertainty is here to stay," said Laing.
U.S. President Donald Trump, joined by (L-R) Counselor to U.S. President Donald Trump Peter Navarro, White House staff secretary Will Scharf, and Commerce Secretary Howard Lutnick, signs a series of executive orders including a 25% tariffs on steel a
Why you should care:
The tariffs carry inflation risks at a moment when voters are already weary of high prices and fearful that price increases will eclipse any income gains. Trump maintains that the tariffs will level the playing field in international trade and make U.S. factories more competitive, such that any pain felt by consumers and businesses would eventually be worthwhile.
"'Fairness' is in the eye of the beholder, but the more fundamental question is whether the U.S. actually benefits from such new tariffs," Benn Steil, director of international economics at the Council on Foreign Relations, a New York-based nonpartisan think tank, said in an email. "The costs to the U.S. will include higher prices to U.S. consumers, retaliatory tariffs abroad, and the loss of U.S. jobs and competitiveness in firms hit by higher input costs."
While the tariffs could help the finances of steel mills and aluminum smelters, they could also increase costs for the manufacturers that use the metals as raw materials to make autos, appliances and other products.
The backstory:
Trump previously threatened 25% import taxes on all goods from Canada and Mexico, though he paused them for 30 days barely a week ago.
At the same time, he proceeded to add 10% duties on imports from China.
What they're saying:
"We were being pummeled by both friend and foe alike," Trump said as he signed two proclamations changing his orders during his first term that go into effect on March 4. "It's time for our great industries to come back to America."
"Any steel coming into the United States is going to have a 25% tariff," Trump said Sunday.
He made the comments Sunday to reporters aboard Air Force One as he flew from Florida to the Super Bowl, adding that aluminium will be subject to the added tariff too.
He also said that he’d be announcing "reciprocal tariffs" later in the week.
Trump has said he sees import taxes as tools to force concessions on issues such as immigration, but also as a source of revenue to help close the government's budget deficit.
The Source: The Associated Press contributed to this report. Information in this article was taken from Trump’s remarks to reporters aboard Air Force One as he flew on Sunday from Florida to attend the Super Bowl in New Orleans, as reported by The Associated Press.