Latest news with #SteelManufacturersAssociation
Yahoo
6 days ago
- Business
- Yahoo
Trump ratchets up steel tariffs to 50%
One of America's most storied industries is getting a massive boost from President Donald Trump's latest tariffs push — at the potential cost of a broader slowdown elsewhere in the U.S. economy. Trump signed an executive order increasing the already substantial 25% duties on steel imports he first set in March to 50%. He signaled last week that the tariff rate hike was coming. It went into effect at midnight Wednesday. 'We're going to bring it from 25% to 50% — the tariffs on steel into the United States of America,' Trump said Friday at a rally in Pennsylvania, 'which will even further secure the steel industry in the United States.' The new 50% duties also affect aluminum products. The tariffs on steel, along with those on imported automobiles and auto parts, have been imposed under authorities not affected by recent court decisions that cast doubt on the president's powers to enact trade barriers. U.S. steel firms have hailed Trump's renewed push to raise the cost to American firms that rely on imports of steel. It's a notably favorable reaction to tariffs amid what has broadly been a backlash against them. 'American-made steel is at the heart of President Trump's plan to revitalize domestic manufacturing and return our country to an economic powerhouse,' the Steel Manufacturers Association said in a statement that applauded Trump's remarks about the new 50% tariffs. Investors have rewarded the steel firms accordingly, sending shares of U.S. steelmakers soaring across the board Monday as U.S. steel and aluminum prices jumped. Today, the steel manufacturing industry directly employs 86,000 U.S. workers. It's a fraction of the half-million-strong workforce the industry counted in the decade after World War II, though employment levels have stabilized more recently. While trade globalization bears substantial responsibility for steel's decadeslong downturn, experts say advances in technology have played an equally significant role. Steel production increasingly revolves around so-called electric arc furnace technology, a more efficient means of production than the classic open blast furnace operations that prevailed for much of the 20th century. The same levels of output from steel's heyday can now be achieved with just a fraction of the workforce. As recently as the early 1980s, it took about 10 man-hours to produce a ton of steel. Today, the rate is as little as a single man-hour assuming multiple steel mills are working in tandem. 'The way we make steel in the U.S. has changed a lot,' said Ken Kolb of Furman University in South Carolina, who is an expert on the local impact of industrial transitions. 'There is simply no way to bring that scale of employment back if a fraction of that workforce is needed to essentially reach the same production levels,' Kolb said. He estimated that perhaps 15,000 new direct jobs could be added assuming capacity levels increase. But the broader cost to industries dependent on steel inputs, like autos, construction and solar panels — which relies on tariffed aluminum components — would most likely negate those gains. 'Theoretically you're going to be able to hire some people, but in reality, the tariffs just raise the average price of steel,' Kolb said. 'And when the price of a commodity like that goes up, businesses just buy less and sideline investment.' A study found that while Trump's 2018 steel tariffs created 1,000 new direct jobs, it cost downstream industries that rely on steel to make their products as many as 75,000 jobs because they became less competitive thanks to higher costs. While some limited capacity could come back online in the near term, the on-again, off-again nature of the tariffs limit any immediate job gains, said Josh Spoores, head of Steel Americas Analysis at the CRU Group consultancy. If the higher tariffs remain, there could be new investments, Spoores said in an email — but building new steel mills can take at least two years. Nor is it clear that American steelworkers themselves are entirely in favor of the tariffs. The United Steelworkers union signaled only tepid endorsement for the measure in a statement after its Canadian chapter rebuked Trump's announcement. 'While tariffs, used strategically, serve as a valuable tool in balancing the scales, it's essential that we also pursue wider reforms of our global trading system, working in collaboration with trusted allies like Canada to contain the bad actors and excess capacity that continue to undermine our industries,' the union said. The union has also shown signs of a split when it comes to Trump's proposed 'partnership' between U.S. Steel and Japan's Nippon Steel, whose takeover of the U.S. firm he previously opposed. Trump now sees the deal 'creating' as many as 70,000 jobs. 'There's a lot of money coming your way,' Trump told supporters at the Pennsylvania rally. The United Steelworkers signaled lingering doubts about the Nippon arrangement in a statement Friday. 'We have not participated in the discussions involving U.S. Steel, Nippon Steel, and the Trump administration, nor were we consulted, so we cannot speculate about the meaning of the 'planned partnership' between USS and Nippon,' the union said, using an initialism to refer to the American firm. It continued: 'Whatever the deal structure, our primary concern remains with the impact that this merger of U.S. Steel into a foreign competitor will have on national security, our members and the communities where we live and work.' This article was originally published on
NBC News
6 days ago
- Business
- NBC News
Trump ratchets up steel tariffs to 50%
One of America's most storied industries is getting a massive boost from President Donald Trump's latest tariffs push — at the potential cost of a broader slowdown elsewhere in the U.S. economy. Trump signed an executive order increasing the already substantial 25% duties on steel imports he first set in March to 50%. He signaled last week that the tariff rate hike was coming. It went into effect at midnight Wednesday. 'We're going to bring it from 25% to 50% — the tariffs on steel into the United States of America,' Trump said at a rally in Pennsylvania, 'which will even further secure the steel industry in the United States.' The new 50% duties also affect aluminum products. The tariffs on steel, along with those on imported automobiles and auto parts, have been imposed under authorities not affected by recent court decisions that cast doubt on the president's powers to enact trade barriers. U.S. steel firms have hailed Trump's renewed push to raise the cost to American firms that rely on imports of steel. It's a notably favorable reaction to tariffs amid what has broadly been a backlash against them. "American-made steel is at the heart of President Trump's plan to revitalize domestic manufacturing and return our country to an economic powerhouse," the Steel Manufacturers Association said in a statement that applauded Trump's remarks about the new 50% tariffs. Investors have rewarded the steel firms accordingly, sending shares of U.S. steelmakers soaring across the board Monday as U.S. steel and aluminum prices jumped. Today, the steel manufacturing industry directly employs 86,000 U.S. workers. It's a fraction of the half million-strong workforce the industry counted in the decade after World War II, though employment levels have stabilized more recently. While trade globalization bears substantial responsibility for steel's decadeslong downturn, experts say advances in technology have played an equally significant role. Steel production increasingly revolves around so-called electric arc furnace technology, a more efficient means of production than the classic open blast furnace operations that prevailed for much of the 20th century. The same levels of output from steel's heydays can now be achieved with just a fraction of the workforce. As recently as the early 1980s, it took about 10 man-hours to produce a ton of steel. Today, the rate is as little as a single man-hour assuming multiple steel mills are working in tandem. "The way we make steel in the U.S. has changed a lot," said an expert on the local impact of industrial transitions, Ken Kolb, chair of the sociology department at Furman University in South Carolina. "There is simply no way to bring that scale of employment back if a fraction of that workforce is needed to essentially reach the same production levels," Kolb said. He estimated that perhaps 15,000 new direct jobs could be added assuming capacity levels increase. But the broader cost to industries dependent on steel inputs, like autos, construction and solar panels — which relies on tariffed aluminum components — would be likely to negate those gains. "Theoretically you're going to be able to hire some people, but in reality, the tariffs just raise the average price of steel," Kolb said. "And when the price of a commodity like that goes up, businesses just buy less and sideline investment." A study found that while Trump's 2018 steel tariffs created 1,000 new direct jobs, it cost downstream industries that rely on steel to make their products as many as 75,000 jobs because they became less competitive thanks to higher costs. While some limited capacity could come back online in the near term, the on-again, off-again nature of the tariffs limit any immediate job gains, said Josh Spoores, head of Steel Americas Analysis at the CRU Group consultancy. If the higher tariffs remain, there could be new investments, Spoores said in an email — but building new steel mills can take at least two years. Nor is it clear that American steelworkers themselves are entirely in favor of the tariffs. The United Steelworkers union signaled only tepid endorsement for the measure in a statement after its Canadian chapter rebuked Trump's announcement. 'While tariffs, used strategically, serve as a valuable tool in balancing the scales, it's essential that we also pursue wider reforms of our global trading system, working in collaboration with trusted allies like Canada to contain the bad actors and excess capacity that continue to undermine our industries,' the union said. The union has also shown signs of a split when it comes to Trump's proposed "partnership" between U.S. Steel and Japan's Nippon Steel, whose takeover of the U.S. firm he previously opposed. Trump now sees the deal "creating" as many as 70,000 jobs. 'There's a lot of money coming your way,' Trump told supporters at the Pennsylvania rally Friday. The United Steelworkers signaled lingering doubts about the Nippon arrangement in a statement Friday. 'We have not participated in the discussions involving U.S. Steel, Nippon Steel, and the Trump administration, nor were we consulted, so we cannot speculate about the meaning of the 'planned partnership' between USS and Nippon," it said, using an initialism to refer to the American firm. It continued: 'Whatever the deal structure, our primary concern remains with the impact that this merger of U.S. Steel into a foreign competitor will have on national security, our members and the communities where we live and work."
Bloomberg
02-06-2025
- Business
- Bloomberg
Bloomberg Surveillance TV: June 2, 2025
- Brandon Farris, Vice President: Energy & Resources Policy at the Steel Manufacturers Association - Kate Kalutkiewicz, Senior Managing Director: Trade Practice & McLarty Inbound at McLarty Associates - Aditya Bhave, Senior US Economist at Bank of America - Victoria Fernandez, Chief Market Strategist at Crossmark Global Investments Brandon Farris, Vice President: Energy & Resources Policy at the Steel Manufacturers Association, joins to discuss President Trump saying he will double steel tariffs and how that could affect consumers and businesses. Kate Kalutkiewicz, Senior Managing Director: Trade Practice & McLarty Inbound at McLarty Associates, discusses the latest on the US-led trade war and whether talks with China are stalling. Aditya Bhave, Senior US Economist at Bank of America, offers his outlook for the US economy and potential for a recession in 2025. Victoria Fernandez, Chief Market Strategist at Crossmark Global Investments, discusses her outlook for equities in 2025 and whether there could be more choppiness in the summer months.
Times of Oman
12-03-2025
- Business
- Times of Oman
Trump's 25% tariffs on steel, aluminium imports take effect
Washington DC: President Donald Trump's increased tariffs on all steel and aluminium imports came into effect on Wednesday as the United States widened its scope of levies amid a campaign to reorder trade norms in its favour. The 25% duties on the two metals would likely push up the cost of producing items ranging from drink cans, home appliances to automobiles, leaving a looming threat of a rise in consumer prices in due course. Also on Wednesday, the European Union announced "countermeasures" against some US goods in a tit-for-tat move against the steel and aluminium tariffs. Ahead of the tariff deadline on Tuesday, Trump threatened Canada with doubling the duty to 50% on steel and aluminium exports to the US. The president later chose to stick to the 25% rate after the Canadian province of Ontario suspended a decision to put a surcharge on electricity sold to the American states of Michigan, Minnesota and New York. The electricity surcharge was a retaliation to earlier US levies. Ontario Premier Doug Ford said he would visit Washington on Thursday with Canadian Finance Minister Dominic LeBlanc for discussions with Trump officials, including Commerce Secretary Howard Lutnick, on revising the United States–Mexico–Canada Agreement (USMCA) on trade. The USMCA was signed during Trump's first term in office and replaced the previous NAFTA agreement. The new levies imposed Wednesday will stack on top of earlier ones, meaning that some steel and aluminium products from Canada and Mexico will likely see a 50% tariff rate unless they are compliant with the USMCA. Canada is the biggest foreign supplier of steel and aluminum to the US. Brazil and Mexico are also important US suppliers of steel, while the United Arab Emirates and South Korea are among key providers of aluminum. American steel producers hail move US steel producers welcomed Wednesday's move, hailing the restoration of Trump's prior metal tariffs in 2018 which were later eroded by exemptions. Canada and Mexico had avoided the import duties on the metals after they agreed to Trump's demand for a revamped North American trade deal in 2020. Other trading partners of the US had import quotas supplant the tariffs. There were also thousands of product-specific exclusions. "By closing loopholes in the tariff that have been exploited for years, President Trump will again supercharge a steel industry that stands ready to rebuild America," Philip Bell, the president of Steel Manufacturers Association, said. "The revised tariff will ensure that steelmakers in America can continue to create new high-paying jobs and make greater investments knowing that they will not be undercut by unfair trade practices," he added. Wall Street indexes fell for a second straight day on Tuesday as Trump's volatile trade plans have triggered concerns that they could steer the world's biggest economy toward a recession. The US President dismissed the losses on Wall Street, saying that he does not see the possibility of an economic downturn.
Yahoo
11-03-2025
- Business
- Yahoo
Why steelmakers want Trump to follow through on Canada tariffs
Investors weigh the impact of US President Donald Trump's tariffs on steel and aluminum imports from Canada amid reports that the president will hold off on 50% tariffs, telling reporters he'll "let you know about it." Steel Manufacturers Association president Philip Bell joins Market Domination Co-Hosts Julie Hyman and Josh Lipton to dive deeper into how US steelmakers are feeling about Trump's tariffs. "We support what President Trump is doing with the tariffs. We feel that this is a central piece of his America First policy, where he is putting our economy, our national security, steelworkers and their families first in order to have fair and even trade," Bell explains. "The steel industry has been under assault for decades with highly subsidized dumped steel from China and other bad actors. And I think this is an important step to make sure that our trading partners, like Canada and Mexico, don't aid and abet the bad actors." Bell tells Yahoo Finance that it's his "hope that he [President Trump] sticks with at least the 25% tariffs as he originally planned." To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Naomi Buchanan. Sign in to access your portfolio
