US tariffs on steel and aluminum doubled to 50%

RTÉ News​

3 days ago

The United States has doubled steel and aluminum tariffs as US President Donald Trump's intensifying trade war weighs on the world economy.
The move, which Mr Trump earlier said was aimed at protecting domestic steel and aluminum industries, takes his levies on both metals from 25% to 50%.
The US president's sweeping tariffs on allies and adversaries alike - including levies on imported steel and autos - have strained US ties with trading partners, including the European Union, and sparked a flurry of negotiations to avoid the duties.
Pressure is mounting as the Organisation for Economic Cooperation and Development (OECD), a 38-nation grouping of mostly developed countries, cut its global growth forecast on the back of Mr Trump's levies
Trade, consumption and investment have been affected by the tariffs, OECD chief economist Alvaro Pereira earlier told AFP, warning that the US economy will see the biggest repercussions.
While some of Mr Trump's most sweeping levies face legal challenges, they have been allowed to remain in place for now as an appeals process is ongoing.
US Trade Representative Jamieson Greer and EU trade commissioner Maros Sefcovic are set to hold talks on the sidelines of the gathering, with the bloc seeking to stave off higher levies from 9 July absent a compromise.
Similarly, UK Trade Secretary Jonathan Reynolds met Mr Greer yesterday to try and avert fresh tariff hikes on steel and aluminum.
Despite the doubling of steel and aluminum tariffs, imports from the UK will remain at 25% for now, while both sides work out duties and quotas in line with the terms of their trade pact.
In their talks, Mr Reynolds and Mr Greer discussed a "shared desire to implement" the pact, including agreements on sectoral tariffs, as soon as possible, a UK readout said.
However, Trump's latest salvo raises temperatures with various partners.
The European Union has said it "strongly regrets" Mr Trump's plan to raise metals tariffs, cautioning that it "undermines ongoing efforts to reach a negotiated solution" with the United States.
The bloc added that it was ready to retaliate.
Looming deadline
Mexico will request an exemption from the higher tariff, Economy Minister Marcelo Ebrard said, arguing that it is unfair because the United States exports more steel to Mexico than it imports.
"It makes no sense to put a tariff on a product in which you have a surplus," Mr Ebrard said.
Mexico is highly vulnerable to Mr Trump's trade wars because 80% of its exports go to the United States, its main trading partner.
Yesterday, White House press secretary Karoline Leavitt confirmed the Trump administration sent letters to trading partners to push for offers by Wednesday as a deadline approached.
Besides imposing 10% tariffs on almost all US trading partners in early April, Mr Trump had announced higher rates for dozens of economies including the EU and Japan as he sought to pressure countries to correct practices US deemed unfair.
These higher rates were paused for 90 days, but the halt is due to expire 9 July.
All eyes are also on rising tensions between the US and China.
Mr Trump has taken special aim at China this year, imposing additional levies of 145% on Chinese imports - triggering Chinese counter tariffs of 125% on US goods.
Both sides agreed to temporarily de-escalate in May, but Mr Trump accused China of violating the deal.
The issue was China "slow walking the approval" of critical mineral exports and rare earth magnets, US Deputy Treasury Secretary Michael Faulkender told CNBC on Monday.