Trump's steel tariff plan to have 'minor' impact on India, says minister
NEW DELHI, June 2 (Reuters) - The impact from U.S. President Donald Trump's plan to increase tariffs on steel and aluminium products is likely to be "minor" as India does not export steel to the U.S. "in a big way", federal steel minister HD Kumaraswamy said on Monday.
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BBC News
16 minutes ago
- BBC News
Donald Trump doubles US steel and aluminium tariffs to 50%
US President Donald Trump has signed an order doubling tariffs on steel and aluminium imports from 25% to 50%.The move hikes import taxes on the metals - key inputs in everything from cars to canned food - for the second time in three has said the measures, which come into effect on Thursday, are intended to secure the future of the American steel industry. However, critics say the protections could wreak havoc on steel producers outside the US, spark retaliation from trade partners, and come at a punishing cost for American users of the metals. Hours before he hiked the duties, many firms directly affected could scarcely believe the plan was moving forward, hoping it would turn out to be temporary or some kind of negotiating as Trump moved forward with the deal, the UK was granted a carve-out from the measures, leaving duties on its steel and aluminium at 25%, a move Trump said reflected its ongoing trade discussions with the US. "Always the question with Mr Trump is, is this a tactic or is this a long-term plan?" said Rick Heuther, chief executive of Independent Can Co, a Maryland-based business, which brings in steel from Europe and turns it into decorative cookie tins, popcorn boxes, and other said he had put investments on hold and feared the abrupt changes, and price increases would lead his customers to turn to alternatives such as plastic or paper boxes. "There's a lot of chaos," he said. The US is the biggest importer of steel in the world, after the European Union, getting most of the metal from Canada, Brazil, Mexico and South Korea, according to the US his first term, Trump imposed tariffs of 25% on steel and 10% on aluminium, citing a law that gives him authority to protect industries considered vital to national security. But many imports ultimately escaped the duties after the US struck trade deals with allies and granted exemptions to certain imports at the request of ended those carve-outs in March, saying he was unhappy with the way the protections had been weakened. At Friday's rally at the US Steel factory, he said wanted to make tariffs so high that US businesses would have no alternative but to buy from American suppliers."Nobody's going to get around that," he said of the 50% rate. "That means that nobody's going to be able to steal your industry. It's at 25% - they can get over that fence. At 50%, they can no longer get over the fence." Reaction in the UK and Europe As of May, imports and the rate of raw steel production in the US had changed little since last year before Trump raised tariffs, according to the American Iron and Steel Institute. But steel imports fell 17% in April, compared to March. And businesses selling the metals into the US said they expected Trump's latest announcement to lead to an even more dramatic drop. Trump's moves in March had already prompted Canada and the European Union to prepare to hit back with tariffs of their own American products. On Tuesday, Olof Gill, spokesperson for economic security and trade for the European Commission told the BBC the two sides were engaged in intense talks to try to make progress toward an agreement. "We're negotiating hard to try and make good deals," he said."We really hope that the Americans will roll back on this latest tariff threat, as they have done on others, but that remains to be seen." In the UK, Trump's announcement put new pressure on the government to pin down the trade deal in the works with the US, which had been expected to provide some protection from the March metals tariffs. Trade Secretary Jonathan Reynolds met with US Trade Representative Jamieson Greer in Paris on Wednesday. His office said it was "pleased" that the trade talks had protected UK steel from the latest duties. "We will continue to work with the US to implement our agreement, which will see the 25% US tariffs on steel removed," he said. Gareth Stace, director general of UK Steel, which represents steelmakers, told the BBC that his members had already seen orders cancelled and delayed as a result of the 25% tariffs put in place in March. He warned that a 50% tariff would be "catastrophic" for UK exports to the US, about 7% of overall exports."The introduction of 50% tariffs immediately puts the shutters up," he said. "Most of our orders, if not all of them, will now be cancelled." Economists said the US economy is also facing damage, as prices rise as a result of the new measures. A 2020 analysis estimated that Trump's first term tariffs created roughly 1,000 jobs in the steel industry, but cost the economy 75,000 jobs in other sectors, such as manufacturing and York, vice president of federal tax policy at the Tax Foundation, said that she expected to see even more extreme job losses this time. "Some of the strongest evidence is against tariffs on intermediate inputs like steel and aluminium, finding they are much more harmful because they increase the cost of production in the United States," she said. "It's just very foolish to double down on this type of tariff in particular." Chad Bartusek is director of supply chain management at Drill Rod & Tool Steels, a small, family-owned manufacturing business in Illinois, which brings in about 800,000 pounds of Austrian-made steel each year, at specifications he says are not produced in the US. Mr Bartusek said he was currently waiting on three containers worth of steel rod, which would have entered the US without duties at the start of the of last week, he had expected to pay tariff costs about $72,000. Instead, he is looking at a tariff bill of almost $145,000. "I woke up Saturday morning, looked at the news and my jaw dropped," he said of Trump's announcement. Mr Bartusek said business had been steady until a few weeks ago. But his firm raised prices earlier this year by 8% to 14% to help cover the new cost of the tariffs. Now customers have been ordering more cautiously and he has had to cut back hours for workers. "It's one punch after the other," he said. "Hopefully, this settles down quickly."
Reuters
44 minutes ago
- Reuters
South Korea's liberal new president Lee Jae-myung vows economic revival, judgement against martial law
SEOUL, June 4 (Reuters) - South Korea woke on Wednesday to a new liberal president, Lee Jae-myung, who vowed to raise the country from the turmoil of a martial law crisis and revive an economy reeling from slowing growth and the threat of global protectionism. Lee's decisive victory in Tuesday's snap election stands to usher in a sea change in Asia's fourth-largest economy, after backlash against a botched attempt at military rule brought down Yoon Suk Yeol just three years into his troubled presidency. With 100% of the ballots counted, Lee had won 49.42% of the nearly 35 million votes cast while conservative rival Kim Moon-soo had taken 41.15% in the polls that brought the highest turnout for a presidential election since 1997, according to National Election Commission data. The 61-year-old former human rights lawyer called Tuesday's election "judgment day" against Yoon's martial law and his People Power Party's failure to stop the ill-fated move. "The first mission is to decisively overcome insurrection and to ensure there will never be another military coup with guns and swords turned against the people," Lee said in a victory speech outside parliament. "We can overcome this temporary difficulty with the combined strength of our people, who have great capabilities," he said. Lee was officially confirmed as president by the National Election Commission early on Wednesday and immediately assumed the powers of the presidency and commander in chief. An abbreviated inauguration is planned at parliament within hours of the official confirmation. A slate of economic and social challenges await the new leader, including a society deeply scarred by divisions following the martial law attempt and an export-heavy economy reeling from unpredictable protectionist moves by the United States, a major trading partner and a security ally. The martial law decree and the six months of ensuing turmoil, which saw three different acting presidents and multiple criminal insurrection trials for Yoon and several top officials, marked a stunning political self-destruction for the former leader and a drag on an economy already slowing in growth. Lee has pledged to boost investment in innovation and technology to fuel the country on another growth trajectory while increasing support for middle and low-income families. Lee is expected to be more conciliatory toward China and North Korea, and has pledged to continue the Yoon-era engagement with Japan.
The Independent
an hour ago
- The Independent
UK's steel industry spared Trump's new 50 per cent tariffs – but exemption deal still not in place
The UK appears to have been spared from the immediate hit of Donald Trump 's 50 per cent steel and aluminium tariffs – although an exemption deal is still not in place. The US president has decided to 'provide different treatment' to the UK after an agreement was struck between the US president and Sir Keir Starmer last month. Levies will remain at 25 per cent for imports from the UK, according to a version of the order confirming the tariff increase posted by a White House X account on Tuesday – however Britain could still be subject to the higher 50 per cent rate from July. The UK government said it is 'pleased' the UK will not be subject to the additional tariffs as it vowed to secure the removal of the 25 per cent levies too. Sir Keir 's trade deal with the US, struck last month, included an exemption on the steel and aluminium tariffs, but the implementation has not yet been finalised. Business secretary Jonathan Reynolds met White House trade representative Jamieson Greer in Paris on Tuesday. According to the Department for Business and Trade, Mr Reynolds and Mr Greer discussed a desire to implement the deal struck as soon as possible, and committed to working closely to make it happen. According to the text of the order released on Tuesday, Mr Trump has 'further determined that it is necessary and appropriate to allow for the implementation of the US-UK Economic Prosperity Deal of 8 May, 2025 (EPD), and to accordingly provide different treatment, as described below, for imports of steel and aluminium articles, and their derivatives, from the United Kingdom'. The order later says that rates will for now stay at 25 per cent and adds: 'On or after 9 July, 2025, the Secretary may adjust the applicable rates of duty and construct import quotas for steel and aluminium consistent with the terms of the EPD, or he may increase the applicable rates of duty to 50 percent if he determines that the United Kingdom has not complied with relevant aspects of the EPD'. The 50 per cent tariff rate more widely is due to come into force from 12.01am Washington DC time on Wednesday, which is shortly after 5am in the UK. A government spokesperson said: 'The UK was the first country to secure a trade deal with the US earlier this month and we remain committed to protecting British business and jobs across key sectors, including steel as part of our plan for change. 'We're pleased that as a result of our agreement with the US, UK steel will not be subject to these additional tariffs. 'We will continue to work with the US to implement our agreement, which will see the 25% US tariffs on steel removed.' The general terms for the agreement between the UK and US were published in May when the deal was announced, and outline the intended plans. White House press secretary Karoline Leavitt was asked if there was a text of the full deal ready to be released, and told reporters on Tuesday: 'There 's most definitely text with this deal, there is language that this side has seen. 'You'll have to ask the UK parliament why they haven't seen it from their own government, I obviously can't answer that question.'
