Trump doubles tariffs on steel and aluminum, raising ire of Canada, Mexico

Axios

4 days ago

President Trump signed an order Tuesday doubling tariffs on steel and aluminum imports from 25% to 50% for al trading partners except the U.S. — drawing swift criticism from officials in neighboring Canada and Mexico.
Why it matters: Trump's order said the increased tariffs that took effect early Wednesday "will more effectively counter" countries that "offload low-priced, excess steel and aluminum" in the U.S., but economic officials have said such levies would lead to higher consumer prices and inflation.
A European Commission official said after Trump announced the metal tariffs plan at a U.S. Steel plant in Pennsylvania on Friday that the president's decision "adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic."
Details: Trump says in the order that the previously imposed steel and aluminum tariffs had helped "provide critical price support" in the U.S.
However, "they have not yet enabled these industries to develop and maintain the rates of capacity production utilization that are necessary for the industries' sustained health and for projected national defense needs," he said.
"I have determined that increasing the previously imposed tariffs will provide greater support to these industries and reduce or eliminate the national security threat posed by imports of steel and aluminum articles and their derivative articles."
Yes, but: Steel and aluminum imports from the U.K. will remain at 25% until at least July 9 due to the framework for a sweeping new trade pact that British Prime Minister Keir Starmer and Trump signed last month.
State of play: The U.K. is not a leading exporter of the metals to the U.S., but Reuters notes that Canada exports the most steel by shipment volumes to the U.S. followed by Mexico.
Canadian Prime Minister Mark Carney's office said in a Tuesday media statement that his government was "engaged in intensive and live negotiations" for the removal of the tariffs, which it described as "unlawful and unjustified."
Mexican Economy Minister Marcelo Ebrard said during a Tuesday event that he'd seek an exemption for the country from the tariffs that he called "not fair" and "unsustainable," per multiple reports.
The EC official said the commission is was "finalizing consultations on expanded countermeasures" and if no resolution was reached "both existing and additional EU measures will automatically take effect" on July 14 or earlier, "if circumstances require."
Flashback: Canada and Mexico were exempted from tariffs Trump imposed on the metals for trading partners during his first term.
What they're saying: Kevin Dempsey, president of industry group American Iron and Steel Institute, in a statement welcomed Trump's tariffs action.
"Led by China, global steel overcapacity and production continues to grow, even as overall global steel demand is being impacted by the sharp downturn in the Chinese construction sector," he said.
"Given these challenging international conditions that show no signs of improvement, this tariff action will help prevent new surges in imports that would injure American steel producers and their workers."
The other side: Robert Budway, president of industry group the Can Manufacturers Institute, in a statement said the tariffs hike would "further increase the cost of canned goods" at grocery stores.
"This cost is levied upon millions of American families relying on canned foods picked and packed by U.S. farmers, food producers, and can makers," he added.