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Time of India
16 hours ago
- Business
- Time of India
Donald Trump raises steel and aluminum tariffs to 50%: Will higher levies affect US industry? What's next
US President Donald Trump has doubled down tariffs on steel and aluminum imports to 50%, following his earlier implementation of 25% tariffs less than three months ago. The move is intended to boost the US steel industry, but many businesses warn it will lead to higher prices for consumers. According to the New York Times, key sectors like housing, automotive, oil, and canned goods are expected to be hit hardest by Trump's increased tariffs. Homebuilders, car makers, oil producers, and packaging companies are expected to face rising costs, which many may pass on to consumers. 1. US steelmakers to create more jobs: Domestic steel industry representatives have welcomed the higher tariffs, saying they could boost investment and create more jobs in the US. Kevin Dempsey, president and chief executive at the American Iron and Steel Institute, stated that the increased tariffs would enhance US steel producers' competitiveness against China and other nations flooding the global market. He noted that many in the industry felt the earlier 25% tariff on steel imports wasn't enough to offer adequate protection. "The increase to 50% is well justified and will help prevent a new surge in imports of steel," Dempsey said. He further continued that higher tariffs would eventually help create new jobs. "Over time, increased production will lead to increased employment," Dempsey added. 2. Foreign steel and aluminum producers: British steel and aluminum exporters will continue facing a 25% tariff when selling to the US, thanks to a temporary deal with the Trump administration. However, other countries like Canada are expected to face steeper challenges under the new tariff rules. As the primary foreign supplier of steel and aluminum to the United States, Canada's response has been strong. The Canadian Steel Producers Association criticised the increase, stating it "essentially closes the US market to our domestic industry." The European Steel Association has expressed concerns that this increase might redirect cheap foreign steel towards European markets. 3. Impact on Aluminum industry: Aluminum industry groups back the US government's move to boost the domestic sector, but they stress the need for continued aluminum imports from Canada. These imports are essential for making specialised products that support American jobs and investments. "We urge the administration to take a tailored approach that reserves high tariffs for bad actors -- such as China that floods the market and includes carve outs for proven partners -- such as Canada," according to Matt Meenan, a spokesperson for the Aluminum Association. They also cautioned that higher tariffs alone won't boost domestic production unless trade policies become "consistent, predictable trade and tariff policy to plan for current and future investment." 4. US Automakers at a disadvantage: Increased steel tariffs are expected to drive up the cost of cars and trucks. This spells trouble for both consumers, who are already dealing with high vehicle prices, and carmakers, who are already burdened by rising costs due to earlier tariffs on imported parts and engines. "These tariff increases will further raise the cost of both imported and domestic steel and aluminum, thereby increasing the cost of assembling a car in the United States," said Matt Blunt, president of the American Automotive Policy Council, which lobbies on behalf of General Motors, Ford Motor and Stellantis. "This action places US industry and US workers at a disadvantage in the global marketplace," he added. The precise impact of increased metal tariffs on vehicle prices remains uncertain. Analysts suggest price increases could range from several hundred dollars to over $1,000 per vehicle. The timing of these price effects is also uncertain. 5. Homebuilders: The steel and aluminium tariffs are expected to increase construction costs and potentially limit new housing developments. Buddy Hughes, chair of the National Association of Home Builders, indicated that prior to the latest increase, builders had calculated tariffs would add $10,900 to new home costs. " President Trump's move to double steel and aluminum tariffs will have a negative impact on housing affordability by further disrupting building material supply chains and fueling business uncertainty," Hughes said in a statement. 6. Can manufacturers: The increased metal tariffs will likely result in higher prices for canned goods at supermarkets. The Can Manufacturers Institute reports that domestic tin mill steel production has decreased by 75% over eight years due to significant production cuts. This reduction has led domestic can manufacturers and food producers to import approximately 80% of tin mill steel from international allies. 7. Oil and Gas producers: The steel tariff increase will affect US oil companies' operations, as steel is essential for pipeline construction and resource extraction. Steel comprises 10% to 20% of new well costs. Rising metal costs coinciding with falling oil prices create difficulties for producers. Smaller operations, which typically cannot order materials far in advance, are particularly affected. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Miami Herald
a day ago
- Business
- Miami Herald
Higher U.S. Tariffs on Steel and Aluminum Imports Take Effect
EDITORS NOTE: EDS: SUBS to expand and revise throughout; SUBS headline; ADDS Mega to contributor line; UPDATES list of related stories. NOTE: Story first moved today at 12:52 a.m. ET.); (ART ADV: With photo.); (With: U.S.-MANUFACTURING-OUTLOOK, TARIFFS-BRITAIN, CHINA-MINERALS-SMUGGLING); Ana Swanson reported from Washington, and Ian Austen from Ottawa, Ontario. Emiliano Rodríguez Mega contributed reporting. WASHINGTON -- U.S. tariffs on steel and aluminum imports doubled Wednesday, as President Donald 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% from 25% just after midnight Eastern time, a matter of addressing "trade practices that undermine national security." They were announced during Trump's visit to a mill run by U.S. Steel 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, Mexico and Europe. They have also sent alarms to automakers, plane manufacturers, homebuilders, oil drillers and other companies that rely on buying metals. In an executive order, 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," Dempsey said. But companies that use steel and aluminum to make their products criticized the tariffs, saying they would add costs for American consumers. Robert Budway, the president of the Can Manufacturers Institute, said doubling the steel tariff would further increase the cost of canned goods at the grocery store. "This cost is levied upon millions of American families relying on canned foods picked and packed by U.S. farmers and can makers," he said. The increase Wednesday is the latest in a mounting array of import taxes Trump has announced since returning to the Oval Office in January, including the 25% tariff on steel and aluminum in March. Taken together, the president's trade tactics have increased concerns of a global downturn and heightened corporate America's worries about the cost of doing business. Economists have pointed out that tariffs on factory inputs such as metals risk slowing U.S. manufacturing, since they raise prices for factories. By adding to the cost of making cars, drilling for oil and building data centers, higher steel tariffs could slow other goals of the Trump administration. An economic analysis published by the U.S. International Trade Commission, an independent, bipartisan government agency, suggested that while the steel and aluminum tariffs levied in Trump's first term helped American steel and aluminum producers, they hurt the broader economy by raising prices for many other industries, including automaking. U.S. unions and major companies like Cleveland-Cliffs and U.S. Steel, which have significant lobbying networks, have argued that tariffs are necessary to keep them in business. After struggling financially for years, U.S. Steel agreed in late 2023 to be acquired by Nippon Steel of Japan, though Trump will make the final call on whether the merger can go through. Foreign governments have bristled at the idea that their steel exports are a national security threat to the United States, in part because American demand for the metals far exceeds the country's current ability to produce them. Canada is the largest foreign supplier of both steel and aluminum to the United States. Mexico, Brazil, South Korea and Germany are major suppliers of steel, while the United Arab Emirates, China and South Korea provide the United States with small amounts of aluminum. On Wednesday, President Claudia Sheinbaum of Mexico called the increased tariffs an unjust order with no legal basis. She also warned that her country could react next week with its own measures. "We disagree with it, we don't think it's fair or sustainable because it makes everything more expensive," she said, adding that Mexican officials are set to meet with their U.S. counterparts to negotiate a deal. "If this is not achieved, then we will also be announcing some measures that we must necessarily take to protect and strengthen jobs. It's not a matter of revenge or retaliation." Mexico's steel trade with the United States has historically shown a deficit, meaning Mexico imports more steel than it exports. On Tuesday, Marcelo Ebrard, Mexico's economy minister, said the country would demand to be spared from the latest tariffs. Britain was granted an exemption from the steel and aluminum levies as part of a preliminary deal struck with the U.S. last month, and it remains to be seen if other countries receive similar treatment as part of trade deals. Canada, which is both the largest exporter of steel to the United States and the largest importer of American steel, followed the initial 25% tariff from Trump with a retaliatory tariff. But to allow manufacturers to adjust and find new sources of supply, it suspended the tariffs' start until October. Some Canadian steel manufacturers have said they believe overseas producers are now selling steel once intended for the U.S. market in Canada at unfairly low prices. Prime Minister Mark Carney said Wednesday that Canada would not respond immediately to the escalation. "We are in intensive discussions right now with the Americans on the trading relationship," he said, adding: "Those discussions are progressing." Unifor, Canada's largest private sector union, was among the groups that called for immediate retaliation Wednesday. They were joined by Doug Ford, the premier of Ontario, the province with the three largest Canadian steelmakers. "We can't sit back and let President Trump steamroll us," Ford told reporters in Toronto. "Every single day that it goes by gives uncertainty through the sectors, it adds additional cost on the steel. So we need to react immediately." Catherine Cobden, the president of the Canadian Steel Producers Association, a trade group, said in a statement that doubling the tariff on imported steel "essentially closes the U.S. market to our domestic industry." The previous 25% tariff on steel already had an effect on Canada's producers. The steel association estimates that since the tariff took effect in March, steel shipments to the United States from Canada have fallen 30%. "Steel tariffs at this level will create mass disruption and negative consequences across our highly integrated steel supply chains and customers on both sides of the border," Cobden said. The Aluminium Association of Canada said in a statement Tuesday that the expanded tariff "makes Canadian exports to the U.S. economically unviable" and that "the industry may be forced to diversify trade toward the European Union." Electricity accounts for about 40% of the cost of smelting aluminum, and the trade group estimated that replacing Canadian aluminum with American production would require the expansion of U.S. power generation equivalent to four Hoover Dams. "The Canadian industry supports the U.S. goal of increasing domestic aluminum production capacity from 50% to 80%," the group said. "Punitive tariffs do not create the certainty needed for long-term, capital-intensive investments. Even with higher domestic output, the U.S. will continue to rely on substantial aluminum imports." Industry analysts have said the U.S. tariffs have not significantly curbed shipments from Canadian aluminum mills. The U.S. aluminum industry is too small to significantly replace imports from Canada without expansion and investment. Century Aluminum, a U.S. aluminum maker, said last year that it would build the first new aluminum smelter in the United States in half a century, doubling domestic production. But the United States would remain dependent on imports for most of its aluminum. This article originally appeared in The New York Times. Copyright 2025
Yahoo
a day ago
- Business
- Yahoo
Trump steel, aluminum tariffs taking effect
President Trump's steel and aluminum tariffs doubled on Wednesday to 50 percent, in a dramatic move aimed at protecting U.S. industries that economists say could increase prices for American consumers. The tariff hike on foreign metals went into effect just after midnight on Wednesday, and they apply to nearly all imports of steel and aluminum. The United Kingdom is exempt from the tariff hike — and will continue to face a 25 percent tariff rate — because of the trade deal announced by Trump and British Prime Minister Keir Starmer last month. Trump on Friday announced plans to hike tariffs on foreign steel and aluminum imports from the 25 percent rate that has been in effect since March 12 — when Trump's steel exemptions on tariffs expired and his import tax hike on aluminum imports took effect. He told steelworkers in a speech at U.S. Steel's Mon Valley Works–Irvin Plant in Pittsburgh that the increase 'will even further secure the steel industry in the U.S.' The president reiterated that sentiment about aluminum imports later that day. Trump formalized the tariff hike in a proclamation on Tuesday, saying the increase would ensure 'such imports will not threaten to impair the national security.' 'In my judgment, the increased tariffs will 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,' he wrote in the proclamation. The anticipated bump in metal duties drew criticism from U.S. foreign trading allies. Canada — the largest exporter of steel and aluminum to the U.S. — called the move 'unlawful and unjustified.' 'Canada's new government is engaged in intensive and live negotiations to have these and other tariffs removed as part of a new economic and security partnership with the United States,' Canadian Prime Minister Mark Carney's office said in a statement. Mexico reportedly plans to ask the Trump administration for an exemption from the steel tariff hike. 'It's not fair and it's unsustainable,' the country's economy minister, Marcelo Ebrard, said on Tuesday, Bloomberg News reported. 'We will present our arguments on Friday to exclude Mexico from this measure.' The move received praise from the industry group American Iron and Steel Institute. Kevin Dempsey, the group's president, said the tariff hike 'will help prevent new surges in imports that would injure American steel producers and their workers.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
a day ago
- Business
- The Hill
Trump steel, aluminum tariffs taking effect
President Trump's steel and aluminum tariffs doubled on Wednesday to 50 percent, in a dramatic move aimed at protecting U.S. industries that economists say could increase prices for American consumers. The tariff hike on foreign metals went into effect just after midnight on Wednesday, and they apply to nearly all imports of steel and aluminum. The United Kingdom is exempt from the tariff hike — and will continue to face a 25 percent tariff rate — because of the trade deal announced by Trump and British Prime Minister Keir Starmer last month. Trump on Friday announced plans to hike tariffs on foreign steel and aluminum imports from the 25 percent rate that has been in effect since March 12 — when Trump's steel exemptions on tariffs expired and his import tax hike on aluminum imports took effect. He told steelworkers in a speech at U.S. Steel's Mon Valley Works–Irvin Plant in Pittsburgh late last month that the increase 'will even further secure the steel industry in the U.S.' The president reiterated that sentiment about aluminum imports later that day. Trump formalized the tariff hike in a proclamation on Tuesday, saying the increase would ensure 'such imports will not threaten to impair the national security.' 'In my judgment, the increased tariffs will 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,' he wrote in the proclamation. The anticipated bump in metal duties drew criticism from U.S. foreign trading allies. Canada — the largest exporter of steel and aluminum to the U.S. — called the move 'unlawful and unjustified.' 'Canada's new government is engaged in intensive and live negotiations to have these and other tariffs removed as part of a new economic and security partnership with the United States,' Canadian Prime Minister Mark Carney's office said in a statement. Mexico reportedly plans to ask the Trump administration for an exemption from the steel tariff hike. 'It's not fair and it's unsustainable,' the country's economy minister, Marcelo Ebrard, said on Tuesday, Bloomberg News reported. 'We will present our arguments on Friday to exclude Mexico from this measure.' The move received praise from at least one industry group: the American Iron and Steel Institute. Kevin Dempsey, the group's president, said the tariff hike 'will help prevent new surges in imports that would injure American steel producers and their workers.'
E&E News
a day ago
- Business
- E&E News
Cleveland-Cliffs hydrogen-based steel project set to die
U.S. steel producer Cleveland-Cliffs is moving on from hydrogen. Cleveland-Cliffs CEO Lourenco Goncalves on Tuesday voiced his strongest doubts yet that U.S. hydrogen production will grow fast enough to support his company's decarbonization plans. A $500 million Department of Energy grant under former President Joe Biden would have replaced a coal-based blast furnace in Ohio with a hydrogen-fueled plant. 'Without hydrogen, the entire thing falls apart,' Goncalves told reporters at an event hosted by the lobby group American Iron and Steel Institute. 'At the very least, I will not have hydrogen at the time I need for that specific project.' Advertisement Goncalves signaled in May that his company, one of the largest American steel producers, would 'substantially alter' and scale back plans to use hydrogen as a reductant at its coal-based steel plant in Middletown, Ohio. He vowed at the time to instead extend the life of a coal-using 'blast furnace' at the plant, adding that Cleveland-Cliffs was renegotiating a retooled grant with the Trump administration.
