Latest news with #TradeExpansionAct
The Hindu
5 hours ago
- Business
- The Hindu
Indian steel, aluminium exports to take a hit with as Trump mulls doubling tariff to 50%
India's exports of steel and aluminium and their products are expected to take $1 billion hit with the proposed fresh tariff hikes by the U.S.. The proposed tariff is double the current 25% tariff under Section 232 of the Trade Expansion Act. Pankaj Chadha, chairman of EEPC India, told The Hindu that annual exports of steel, aluminium and products are worth nearly $5 billion. 'We have barely settled down after the March announcement of sectoral tariff. How can we do business with such uncertainty in tariffs. The US sources castings, fasteners, holdings, etc. We (Indian exporters) need to diversify to other markets,' he said. The EEPC India will pursue with the Indian government to get exemption from Section 232, similar to the exemption the U.S. has given to the U.K. According to the GTRI, the U.S. steel prices are already high, at around $984 per tonne compared with European prices at $690 and Chinese prices at $392. The doubling of tariffs is expected to push U.S. prices to about $1,180, hitting the U.S. domestic industries in sectors such as automobiles, construction, and manufacturing. For India, the consequences are direct. In FY 2025, India exported $4.56 billion worth of iron, steel, and aluminium products to the U.S., with key categories including $587.5 million in iron and steel, $3.1 billion in articles of iron or steel, and $860 million in aluminium and related articles. India has issued a formal notice at the World Trade Organization signalling its intention to impose retaliatory tariffs on U.S. goods in response to the earlier steel tariffs. With the US now planning to double the tariffs, it remains to be seen whether India will carry out the retaliation, by increasing tariffs on certain U.S. exports within a month. India imports nearly $ 2 billion worth iron, steel, aluminium and their goods from the U.S., said the GTRI. S C Ralhan, president of the Federation of Indian Export Organisations, said in a press release that the proposed tariff will have significant bearing especially on semi-finished and finished categories such as stainless steel pipes, structural steel components, and automotive steel parts. These products are part of India's growing engineering exports, and higher duties could erode India's price competitiveness in the U.S. market. Such sharp increases in tariffs send discouraging signals to global trade and manufacturing supply chains. 'We urge the Government to take up the issue at the bilateral level to ensure that Indian exporters are not unfairly disadvantaged as 25% additional duty will be a huge burden, which is difficult to be absorbed by the exporter/importer.'
Time of India
17 hours ago
- Business
- Time of India
Trump to double steel tariffs to 50%
US President Donald Trump on Friday said he would raise tariffs on imported steel to 50 per cent, up from the current 25 per cent. The move, set to take effect on June 4, is expected to raise costs for global steel producers and expand the scope of his trade actions. 'We are going to be imposing a 25 per cent increase. We're going to bring it from 25 per cent to 50 per cent — the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States,' Trump said at a rally in Pennsylvania. Reuters reported that the announcement was made during a speech near Pittsburgh, where Trump also discussed a $14.9 billion agreement between Nippon Steel and US Steel . He said both the deal and the tariff hike would help preserve employment in the steel sector. Impact on markets and global trade Following the announcement, shares of Cleveland-Cliffs Inc rose 26 per cent in after-hours trading as investors anticipated higher profits under the new tariff regime. The decision comes shortly after Trump accused China of breaching a trade understanding with the US regarding the rollback of tariffs on critical minerals. Trump made the announcement at US Steel's Mon Valley Works plant in Pennsylvania, a state seen as electorally significant. The site has long been associated with the rise and decline of domestic manufacturing. The 25 per cent tariffs on most steel and aluminium products were first introduced in March under Section 232 of the Trade Expansion Act, citing national security concerns. The expanded tariffs now include a range of metal products, such as stainless steel sinks, gas ranges, frying pans, and door hinges. According to US Census Bureau data, the 2024 import value for the 289 affected product categories reached $147.3 billion — with steel accounting for one-third and aluminium the remainder. By comparison, Trump's initial two rounds of tariffs on Chinese industrial goods during his first term covered $50 billion worth of annual imports. In 2024, the US imported 26.2 million tonnes of steel, excluding the European Union. Industry analysts expect the new tariffs to lead to increased steel prices domestically, affecting manufacturers and end-users.
Yahoo
a day ago
- Business
- Yahoo
Trump says he'll double steel tariff to 50 percent
President Donald Trump said on Friday that he is doubling his tariff on steel to 50 percent, from 25 percent currently, to prevent billions of dollars worth of foreign steel from continuing to enter the United States. "At 50 percent, they can no longer get over the fence," Trump said during a speech at a U.S. Steel facility in West Mifflin, Pennsylvania, where he announced details of a new "partnership" that will allow Japanese-owned Nippon Steel to acquire the iconic American company. Trump initially imposed a 25 percent tariff on steel during his first term in office under a national security trade provision known as Section 232 of the 1962 Trade Expansion Act. After returning in January for a second term, he canceled deals that the Biden administration made with Japan, the U.K. and the EU to ease the impact of those tariffs. He also further tightened the duties by eliminating a program that allowed importers to seek exemptions for individual steel products. His announcement on Friday came after two court rulings this week that struck down his use of another authority, the International Economic Emergency Powers Act, to impose sweeping reciprocal tariffs on countries around the world as well as duties aimed specifically at China, Canada and Mexico. A third federal court promptly issued a temporary stay of one of the rulings, keeping the tariffs in effect, for now. In the aftermath of that ruling, administration officials have said they would rely on other authorities, like Section 232, to impose duties, while expressing confidence they would win their case to preserve the IEEPA duties on appeal. Still, Trump's move on Friday could complicate efforts to strike trade deals with the EU and other trading partners, who continue to seek relief from the steel tariffs.
Politico
a day ago
- Business
- Politico
Trump says he'll double steel tariff to 50 percent
President Donald Trump said on Friday that he is doubling his steel tariff on steel to 50 percent, from 25 percent currently, to prevent billions of dollars worth of foreign steel from continuing to enter the United States. 'At 50 percent, they can no longer get over the fence,' Trump said during a speech at a U.S. Steel facility in West Mifflin, Pennsylvania, where he announced details of a new 'partnership' that will allow Japanese-owned Nippon Steel to acquire the iconic American company. Trump initially imposed a 25 percent tariff on steel during his first term in office under a national security trade provision known as Section 232 of the 1962 Trade Expansion Act. After returning in January for a second term, he canceled deals that the Biden administration made with Japan, the U.K. and the EU to ease the impact of those tariffs. He also further tightened the duties by eliminating a program that allowed importers to seek exemptions for individual steel products. His announcement on Friday came after two court rulings this week that struck down his use of another authority, the International Economic Emergency Powers Act, to impose sweeping reciprocal tariffs on countries around the world as well as duties aimed specifically at China, Canada and Mexico. A third federal court promptly issued a temporary stay of one of the rulings, keeping the tariffs in effect, for now. In the aftermath of that ruling, administration officials have said they would rely on other authorities, like Section 232, to impose duties, while expressing confidence they would win their case to preserve the IEEPA duties on appeal. Still, Trump's move on Friday could complicate efforts to strike trade deals with the EU and other trading partners, who continue to seek relief from the steel tariffs.
Washington Post
a day ago
- Business
- Washington Post
Answering your questions about President Trump's tariffs
WASHINGTON — President Donald Trump returned to the White House in January determined to overturn decades of American policy and build a tariff wall around a U.S. economy that used to be pretty much wide open to foreign products. In the process, he has rattled financial markets and worried consumers with an ever-changing lineup of import taxes. The pattern goes something like this: He'll announce new tariffs, then suspend them, then come up with new ones. The uncertainty has paralyzed businesses who don't know what to expect. And economists worry that the tariffs will push up prices and hurt economic growth. Trump says the tariffs will protect American industry, lure factories back to the United States and raise money for the federal government. But a court case this week has raised doubts about how far he can go in asserting his power to tax imports. The Associated Press asked for your questions about Trump's tariffs. Here are a few of them, along with our answers: The U.S. Constitution gives Congress the power to establish taxes . That includes tariffs, which are just a tax on imports. Over the years, however, Congress has ceded some authority to impose tariffs to the president under various laws. For example, Section 232 of the Trade Expansion Act of 1962 allows the president to slap taxes on imports that he says pose a threat to national security. Trump used Section 232 to impose tariffs on imported steel and aluminum in his first term and on cars and auto parts in his second. But Section 232 requires a Commerce Department investigation, which takes time. Likewise, Section 301 of the Trade Act of 1974 allows the president to tax imports from countries found to have engaged in unfair trade practices after an investigation by the Office of the U.S. Trade Representative. Trump used Section 301 in his first term to impose tariffs on China in a dispute over Beijing's sharp-elbowed attempts to challenge U.S. technological supremacy through tactics such as subsidizing Chinese firms and forcing U.S. companies to hand over trade secrets. Trump wanted to move faster after he returned to the White House in January. So he reached for the power to impose tariffs himself without waiting around. He turned to the International Emergency Economic Powers Act (IEEPA) of 1977, arguing that the law allowed him to declare a national emergency and impose tariffs to address it. So in February he declared the illegal flow of immigrants and drugs an emergency and used it to justify tariffs on Canada, China and Mexico . Then last month he declared America's long-running trade deficits an emergency and imposed tariffs on almost every country in the world . At least seven lawsuits are challenging his use of that power. And on Wednesday the U.S. Court of International Trade blocked Trump's IEEPA tariffs , ruling that he'd overstepped his authority. The emergency powers act, the three-judge panel declared, did not allow the use of global tariffs. Moreover, it said, the tariffs did not address the problems the president had identified. The Trump administration has appealed the ruling, and a federal appeals court on Thursday allowed the government to continue collecting the IEEPA import taxes while the appeals continue. Congress has made some motion toward reasserting its authority. Republican Sen. Chuck Grassley of Iowa and Democratic Sen. Maria Cantwell of Washington, for instance, have introduced legislation that would require presidents to justify new tariffs to Congress. Lawmakers would then have 60 days to approve the tariffs. Otherwise, they would expire. But their proposal appears to stand little chance of becoming law, given most Republican lawmakers' deference to Trump and the president's veto power. Yes, and some of his top aides swiftly promised to do so. Still, to do it legally will take longer and he may not be able to reinstate every duty that he previously imposed, or threatened to impose. In fact, the court laid out a bit of a road map, pointing out that if Trump wanted to impose duties to reduce U.S. trade deficits, he should use a different law that was expressly intended for that purpose — specifically, Section 122 of the Trade Act of 1974. Yet that law only allows tariffs of up to 15% for 150 days. The broader point of the court's ruling is that since Congress has the power to impose tariffs under the Constitution, it can only delegate that power to the president under specific laws the president has to follow. There are several Trump could use, including Section 301 of the 1974 Trade Act, but that does require an investigation of another country's trade practices to establish that they either violated a trade agreement or engaged in unfair trade practices. Another possibility is Section 338 of the Trade Act of 1930, which allows tariffs of up to 50% for countries that have discriminated against U.S. imports. It doesn't require a government agency to investigate anything. And Section 201 of the 1974 Trade Act allows duties to be imposed of up to 50%, but only after an investigation that establishes that imports have harmed a specific U.S. industry. That law was used to slap tariffs on some solar products in 2018. If the courts uphold Wednesday's ruling and the import taxes are struck down, the money will be refunded back to the U.S. companies that paid it. Otherwise, it goes to the U.S. Treasury, like personal and corporate income taxes, to pay for government expenses. Tariff revenue collections have spiked in recent months, and were on track to reach about $22 billion in May. That is up from $6 billion in February, before most tariffs were imposed. Economists at Nomura Securities estimate that the tariffs struck down by the court have raised a total of about $40 billion to $60 billion so far.
