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New York Times
5 days ago
- Business
- New York Times
How Higher Tariffs on Steel and Aluminum Will Affect Companies
President Trump has raised tariffs on steel and aluminum imports to 50 percent less than three months after imposing a 25 percent tariff on them. He said the move, made Wednesday, would help support U.S. steel companies, but many domestic businesses say that the latest increase would hurt them and raise prices for all Americans. U.S. home builders, car manufacturers, oil producers and can makers will be among the most affected. Many companies in those and other industries will likely pass on cost increases to their customers. 'It means higher costs for consumers,' said Mary E. Lovely, a senior fellow at the Peterson Institute for International Economics, a research organization in Washington that tends to favor lower trade barriers. These are some of the industries that could feel the biggest effects from Mr. Trump's latest tariffs. American Steel Makers Industry groups representing domestic steel producers praised the steeper levies, which they said could spur investment and create jobs in the United States. Kevin Dempsey, the president and chief executive at the American Iron and Steel Institute, said the latest increase would help U.S. steel producers compete with China and other countries that have flooded the global market with metal. Mr. Dempsey said the industry had worried that the 25 percent tariff on steel imports alone was not sufficient. Want all of The Times? Subscribe.
CNN
6 days ago
- Business
- CNN
The Trump administration just doubled the tariffs on steel and aluminum imports. Here's what that means
US tariffs on steel and aluminum doubled to 50% as of 12:01 am ET on Wednesday, a move cheered by the beleaguered American steel industry but worrisome to sectors that heavily use the metals, from car makers to can manufacturers. The jump in import taxes is the latest salvo in President Donald Trump's trade war, part of a broad range of tariffs he's levied since February. But the steel tariffs are especially significant to him and his political base, a symbol of once-iconic US manufacturing that has since fallen on hard times. The leap in tariffs likely won't hit American pocketbooks immediately – but experts say that higher prices on construction projects, car lots, appliances and elsewhere are all but inevitable from the higher duties. And while the tariffs could protect steel manufacturing jobs, they could hurt employment in much larger industries. But the administration said the tariffs are crucial to national security and the economy. 'Domestic steel and aluminum production is imperative for our defense-industrial base,' White House spokesman Kush Desai said in a statement to CNN. 'The Trump administration is committed to reshoring manufacturing that's critical for our national and economic security while unleashing a full suite of supply-side reforms – including rapid deregulation, tax cuts, and unleashing American energy – to continue delivering economic relief for the American people.' The American Iron and Steel Institute, an industry trade group, said that protecting the steel industry is crucial. 'We still consume more steel than we produce in America,' said Lourenco Goncalves, CEO of Cleveland Cliffs, one of the major US steelmakers, and the chairman of AISI. He said that raising the tariffs to 50% will only increase the cost of building a car by $300, which he characterized as minor in terms of the overall cost of a car. 'The average cost of a car is $48,000, with an added $300, it's $48,300. That's not going to be the decision-making factor for a person to buy or not buy a car,' he said at a press conference Tuesday. But the Aluminum Association, the trade group for that industry, said it worried that the broad universal tariff could hurt it more than it helps as it cuts off the supply of raw aluminum from Canada many finishing mills in the United States depend upon. Those mills account for most of the jobs in the US aluminum industry. Industries that use steel and aluminum also expressed concern. Can manufacturers warned that price hikes could even reach grocery store shelves. The Can Manufacturers Institute, a trade group for the industry, said domestic can makers import almost 80% of tin mill steel due to the cut in domestic production of that type of steel. It said the increase in tariffs will 'further increase the cost of canned goods,' such as food and drinks. But it is not clear when or if that increase of a few cents per can will be passed onto consumers. Experts also warn there are more jobs at risk at manufacturers that use steel and aluminum than would be protected by the tariffs. 'I think that's a really quintessentially damaging policy, there are (at least) 50 times more workers…in industries that use steel, like cars, than there are in the steel industry,' Larry Summers, director of the National Economic Council during the Obama administration, told CNN Monday. 'And so the net effect of this is going to be to destroy manufacturing jobs. The net effect of this is going to be to push up consumer prices.' Trump announced a 25% tariff on steel imports in February, part of a broader effort by the White House to revive America's Rust Belt and boost manufacturing jobs. He announced the doubling of the tariffs on Friday during a trip to a US Steel mill outside of Pittsburgh. 'If you don't have steel, you don't have a country,' he told a crowd filled with cheering steelworkers. 'You can't make a military. What are we going to do? Say, 'Let's go to China to get our steel for the army tanks and for the boats and ships.' A strong steel industry is not just a matter of dignity or prosperity and pride. It's above all, a matter of national security.' Spot steel prices have increased 20% or more, depending on the product, since the original 25% tariffs went into effect in March, said Philip Gibbs, steel analyst for KeyBank. He said that aluminum prices have also increased, but not by as much. Overall steel prices increased 6% just between March and April, according to the government's Producer Price Index, while aluminum prices increased 2%. 'They're not bashful about asking for price increases,' Gibbs said. 'If they feel like if they have a window to ask, they will.' The two industries have been benefiting from the previous 25% tariffs. But they've had other protections. Trump in 2018, during his previous administration, also announced 25% tariffs on steel and 10% tariffs on aluminum, although the following year he lifted them on Mexico and Canada. While the US is not the manufacturing-focused economy it once was, it still consumes tens of millions of tons of steel and aluminum a year. Studies of those 2018 tariffs found that for every steel job that was saved, there were 75 jobs lost elsewhere in manufacturing due to higher input costs. (The American Iron and Steel Institute challenges those studies.) Automakers mostly source their steel used at North American plants from domestic mills, and they have long-term purchase contracts that have, so far, protected them from price increases in the spot market. But the previous round of tariffs in 2018 and the price increases that followed eventually cost the companies billions of dollars, the automakers reported at that time. It also did little to increase steel production then, and it's not clear it will this time. For example, American producers have largely exited the market for the tin mill steel used for cans. That includes Cleveland Cliffs, but Goncalves said the company is not considering restarting that production even with the 50% tariffs. He also wouldn't comment on his company's pricing plans. And the tariffs could actually hurt some manufacturers they we designed to protect. The earlier 25% tariff on all imported aluminum could cost 100,000 American jobs, William Oplinger, the CEO of Alcoa, one of the largest US aluminum makers, warned in February. Asked if it had any new estimates given the doubling of the tariffs, Alcoa told CNN in a statement that it is 'evaluating the announcement.' Some of those jobs could be because of lost business. Coca-Cola CEO James Quincey said in February the company is preparing to package more of its products in plastic and glass as opposed to aluminum to avoid the higher input costs, and that was considering only the 25% tariff rate. But US aluminum mills in the United States get much of the aluminum they process from Canada, where the cost of energy needed to make the raw material is cheaper. The Aluminum Association is seeking a carve out for Canadian imports. 'We urge the administration to take a tailored approach that reserves high tariffs for bad actors—such as China—that flood the market and includes carve outs for proven partners—such as Canada,' said the trade group's statement. 'Doing so will ensure the US economy has the access to the aluminum it needs to grow, while we work with the administration to increase domestic production.' – CNN's Elisabeth Buchwald contributed to this report.
CNN
6 days ago
- Business
- CNN
The Trump administration just doubled the tariffs on steel and aluminum imports. Here's what that means
US tariffs on steel and aluminum doubled to 50% as of 12:01 am ET on Wednesday, a move cheered by the beleaguered American steel industry but worrisome to sectors that heavily use the metals, from car makers to can manufacturers. The jump in import taxes is the latest salvo in President Donald Trump's trade war, part of a broad range of tariffs he's levied since February. But the steel tariffs are especially significant to him and his political base, a symbol of once-iconic US manufacturing that has since fallen on hard times. The leap in tariffs likely won't hit American pocketbooks immediately – but experts say that higher prices on construction projects, car lots, appliances and elsewhere are all but inevitable from the higher duties. And while the tariffs could protect steel manufacturing jobs, they could hurt employment in much larger industries. But the administration said the tariffs are crucial to national security and the economy. 'Domestic steel and aluminum production is imperative for our defense-industrial base,' White House spokesman Kush Desai said in a statement to CNN. 'The Trump administration is committed to reshoring manufacturing that's critical for our national and economic security while unleashing a full suite of supply-side reforms – including rapid deregulation, tax cuts, and unleashing American energy – to continue delivering economic relief for the American people.' The American Iron and Steel Institute, an industry trade group, said that protecting the steel industry is crucial. 'We still consume more steel than we produce in America,' said Lourenco Goncalves, CEO of Cleveland Cliffs, one of the major US steelmakers, and the chairman of AISI. He said that raising the tariffs to 50% will only increase the cost of building a car by $300, which he characterized as minor in terms of the overall cost of a car. 'The average cost of a car is $48,000, with an added $300, it's $48,300. That's not going to be the decision-making factor for a person to buy or not buy a car,' he said at a press conference Tuesday. But the Aluminum Association, the trade group for that industry, said it worried that the broad universal tariff could hurt it more than it helps as it cuts off the supply of raw aluminum from Canada many finishing mills in the United States depend upon. Those mills account for most of the jobs in the US aluminum industry. Industries that use steel and aluminum also expressed concern. Can manufacturers warned that price hikes could even reach grocery store shelves. The Can Manufacturers Institute, a trade group for the industry, said domestic can makers import almost 80% of tin mill steel due to the cut in domestic production of that type of steel. It said the increase in tariffs will 'further increase the cost of canned goods,' such as food and drinks. But it is not clear when or if that increase of a few cents per can will be passed onto consumers. Experts also warn there are more jobs at risk at manufacturers that use steel and aluminum than would be protected by the tariffs. 'I think that's a really quintessentially damaging policy, there are (at least) 50 times more workers…in industries that use steel, like cars, than there are in the steel industry,' Larry Summers, director of the National Economic Council during the Obama administration, told CNN Monday. 'And so the net effect of this is going to be to destroy manufacturing jobs. The net effect of this is going to be to push up consumer prices.' Trump announced a 25% tariff on steel imports in February, part of a broader effort by the White House to revive America's Rust Belt and boost manufacturing jobs. He announced the doubling of the tariffs on Friday during a trip to a US Steel mill outside of Pittsburgh. 'If you don't have steel, you don't have a country,' he told a crowd filled with cheering steelworkers. 'You can't make a military. What are we going to do? Say, 'Let's go to China to get our steel for the army tanks and for the boats and ships.' A strong steel industry is not just a matter of dignity or prosperity and pride. It's above all, a matter of national security.' Spot steel prices have increased 20% or more, depending on the product, since the original 25% tariffs went into effect in March, said Philip Gibbs, steel analyst for KeyBank. He said that aluminum prices have also increased, but not by as much. Overall steel prices increased 6% just between March and April, according to the government's Producer Price Index, while aluminum prices increased 2%. 'They're not bashful about asking for price increases,' Gibbs said. 'If they feel like if they have a window to ask, they will.' The two industries have been benefiting from the previous 25% tariffs. But they've had other protections. Trump in 2018, during his previous administration, also announced 25% tariffs on steel and 10% tariffs on aluminum, although the following year he lifted them on Mexico and Canada. While the US is not the manufacturing-focused economy it once was, it still consumes tens of millions of tons of steel and aluminum a year. Studies of those 2018 tariffs found that for every steel job that was saved, there were 75 jobs lost elsewhere in manufacturing due to higher input costs. (The American Iron and Steel Institute challenges those studies.) Automakers mostly source their steel used at North American plants from domestic mills, and they have long-term purchase contracts that have, so far, protected them from price increases in the spot market. But the previous round of tariffs in 2018 and the price increases that followed eventually cost the companies billions of dollars, the automakers reported at that time. It also did little to increase steel production then, and it's not clear it will this time. For example, American producers have largely exited the market for the tin mill steel used for cans. That includes Cleveland Cliffs, but Goncalves said the company is not considering restarting that production even with the 50% tariffs. He also wouldn't comment on his company's pricing plans. And the tariffs could actually hurt some manufacturers they we designed to protect. The earlier 25% tariff on all imported aluminum could cost 100,000 American jobs, William Oplinger, the CEO of Alcoa, one of the largest US aluminum makers, warned in February. Asked if it had any new estimates given the doubling of the tariffs, Alcoa told CNN in a statement that it is 'evaluating the announcement.' Some of those jobs could be because of lost business. Coca-Cola CEO James Quincey said in February the company is preparing to package more of its products in plastic and glass as opposed to aluminum to avoid the higher input costs, and that was considering only the 25% tariff rate. But US aluminum mills in the United States get much of the aluminum they process from Canada, where the cost of energy needed to make the raw material is cheaper. The Aluminum Association is seeking a carve out for Canadian imports. 'We urge the administration to take a tailored approach that reserves high tariffs for bad actors—such as China—that flood the market and includes carve outs for proven partners—such as Canada,' said the trade group's statement. 'Doing so will ensure the US economy has the access to the aluminum it needs to grow, while we work with the administration to increase domestic production.' – CNN's Elisabeth Buchwald contributed to this report.
New York Times
6 days ago
- Business
- New York Times
Trump Doubles Steel and Aluminum Tariffs
U.S. tariffs on steel and aluminum imports doubled on Wednesday, as President Trump continued to ratchet up levies on foreign metals that he claims will help revitalize American steel mills and aluminum smelters. The White House called the increased tariffs, which rose to 50 percent from 25 percent just after midnight Eastern time, a matter of addressing 'trade practices that undermine national security.' They were announced during Mr. Trump's visit to a U.S. Steel mill last week, and appear to be aimed at currying favor with steelworkers and the steel industry, including those in swing states like Pennsylvania, where U.S. Steel is based. The higher levies have already rankled close allies that sell metal to the United States, including Canada and Europe. They have also sent alarms to automakers, plane manufacturers, home builders, oil drillers and other companies that rely on buying metals. In an executive order, Mr. Trump said the higher tariffs would 'more effectively counter foreign countries that continue to offload low-priced, excess steel and aluminum in the United States market and thereby undercut the competitiveness of the United States steel and aluminum industries.' Kevin Dempsey, the president of the American Iron and Steel Institute, an industry group, praised the move. He said China and other countries oversupplied the international market, making it harder for U.S. producers to compete. '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,' Mr. Dempsey said. Source:International Trade Administration steel import monitor and aluminum import monitor. Note: Data is imports of products for domestic consumption. By Lazaro Gamio Want all of The Times? Subscribe.
Auto Blog
06-05-2025
- Automotive
- Auto Blog
Trump Signs Executive Order Lowering Impact of Auto Tariffs
President Trump has given automakers manufacturing vehicles in the US some breathing room with his administration's tariffs—but will it be enough? Trump gives automakers some tariff relief for domestic production President Trump has signed an executive order easing the impact of his 25% tariffs on vehicle imports, which took effect April 3, and auto parts, which is scheduled to begin on May 3. The new legislation states that 25% tariffs will remain on all vehicle imports except for United States-Mexico-Canada Agreement (USMCA) exempt cars. Auto parts from Mexico and Canada compliant with the USMCA agreement will also remain exempt. 0:07 / 0:09 Farewell to the stick shift: these cars lost their manual transmissions in 2025 Watch More However, Trump's new executive order prevents multiple U.S. tariffs from being stacked on the same imported product for companies making vehicles in the U.S. For example, a car or auto part that's subject to the 25% tariffs would not face additional levies on steel or aluminum. Matt Brannon, a data journalist for Insurify, said: 'Steel makes up about 54% of the average vehicle, according to the American Iron and Steel Institute. Aluminum is also a big factor—roughly half of all aluminum in the US that is used is imported, and the vast majority of that aluminum comes from Canada.' NBC reports. However, Kelley Blue Book notes that The American Iron and Steel Institute estimated in February that just 21% of the steel used in American manufacturing was imported. Trump auto tariff executive order — Source: Getty Rebates are on the way as well, but only for a limited time Trump's executive order also gives carmakers partial rebates on tariffs paid for imported parts at 3.75% during the first year and 2.5% the second year before being phased out, with the offset available for cars produced after April 3. The President's changes apply retroactively to imports since his tariffs took effect, so any overpaid levies due to stacking will be refunded. The White House's official Rapid Response X account, formerly Twitter, posted today's executive order, which reads: 'I [President Trump] have now determined that, to the extent these tariffs apply to the same article, these tariffs should not all have a cumulative effect (or 'stack' on top of one another) because the rate of duty resulting from such stacking exceeds what is necessary to achieve the intended policy goal.' Trump's intended policy goal with the auto levies is to protect national security and stimulate domestic car production, which he believes will help the country prosper. However, when asked if he thought this prosperity would materialize through Trump's tariffs, viral auto influencer Scotty Kilmer, who has been a mechanic for nearly 60 years, told Autoblog: 'It's all for show; it's not gonna change dramatically because it costs too much money to manufacture in this country. Even the Japanese are doing it in Japan. They're farming a lot out because it costs too much to build in Japan. That's just the natural capitalistic migration of money, and these tariffs aren't going to affect it all.' Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. Jeep Wrangler 392 Rubicon — Source: Getty Final thoughts The public initially expressed concerns that Trump's auto tariffs would hurt domestic carmakers, so the President's actions on Tuesday afternoon seem to address these worries. Still, while President Trump's executive order offering domestic automakers relief from tariff stacking could provide industry stabilization, it's unclear whether or not the measure will make a significant enough impact against the core 25% levies that remain intact.
