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Trump's 50% steel and aluminium tariffs come into effect

Irish Examiner

10 hours ago

Business
Irish Examiner

Trump's 50% steel and aluminium tariffs come into effect

US president Donald Trump has formally raised steel and aluminium tariffs to 50% from 25%, following through on a pledge to boost US import taxes to help domestic manufacturers. The move took effect at midnight in Washington time on Wednesday - 8am Irish time - with Mr Trump claiming they protect national security. An order signed on Tuesday said the previous charge had 'not yet enabled' domestic industries 'to develop and maintain the rates of capacity production utilization that are necessary for the industries' sustained health and for projected national defence needs". Mr Trump's latest levy is fanning trade tensions at a time when the US is locked in negotiations with numerous trading partners over his so-called 'reciprocal' duties ahead of a July 9 deadline. The president's ability to unilaterally impose tariffs also stands on shakier legal ground after a US federal court last week knocked down many of his other duties put in place under an emergency law. His levies on metals were not subject to that ruling, however, and the president has sought to show he's undeterred from pressing countries to make offers at the negotiating table. Metals charges on imports from the UK will remain at the previous 25% rate to allow the two nations to work on new levies or quotas by a July 9 deadline, according to the order. Mexico has said it will ask the US administration for its own exemption from what its economy minister Marcelo Ebrard has called an 'unsustainable' increase. Mr Trump announced his decision to hike steel tariffs during a speech at a United States Steel Corp. plant in Pennsylvania last Friday, where he endorsed the sale of the company to Japan's Nippon Steel Corp. while pledging that it would remain under some form of American control. 'That means that nobody's going to be able to steal your industry,' he told steelworkers. 'It's at 25%, they can sort of get over that fence; at 50% they can no longer get over the fence.' Bloomberg

Trump signs order hiking steel, aluminum tariffs to 50%, exempts UK

Business Standard

12 hours ago

Business
Business Standard

Trump signs order hiking steel, aluminum tariffs to 50%, exempts UK

US President Donald Trump on Tuesday signed a directive doubling tariffs on steel and aluminium imports to 50 per cent from 25 per cent, with the increase taking effect from today. The move follows through on his earlier commitment to raise import duties in a bid to support domestic manufacturing. This is the second tariff hike on these metals since March, affecting critical inputs across industries from automobiles to canned goods. The order stated that the earlier tariff level had "not yet allowed" domestic industries to achieve and sustain the production capacity and utilisation rates needed for their long-term viability, and to meet anticipated national defence requirements, reported Bloomberg. The order, posted by the White House on X, said that raising the existing tariffs would offer stronger support to domestic industries and help reduce or eliminate the national security threat posed by imports of steel, aluminium and related products. UK imports exempted from the tariff rise Tariffs on steel and aluminium imports from the UK will, however, remain at the existing 25 per cent level, allowing both countries time to finalise new levies or quotas by a July 9 deadline, according to the directive. While a framework to reduce trade barriers on steel was agreed upon last month, the two sides have yet to settle on the extent of relief for British steel, and the deal has not yet come into force. The exemption for the UK came just hours after the British government confirmed that both nations had agreed on the need to swiftly implement a tariff relief agreement. Trade tensions and legal challenges Trump's move has heightened trade tensions as the US remains engaged in negotiations with multiple trading partners over his proposed 'reciprocal' tariffs ahead of a 9 July deadline. His authority to impose such tariffs unilaterally faces increased legal scrutiny, especially after a federal court recently struck down several other duties he had implemented under the International Emergency Economic Powers Act. However, the steel and aluminium duties remain unaffected, as they were imposed under a separate legal authority, according to a Bloomberg report. The president has signalled he remains committed to raising duties and pressuring countries to make concessions at the negotiating table. Trump had announced the tariff hike last Friday during a speech at a United States Steel Corp plant in Pennsylvania, where he backed the company's sale to Japan's Nippon Steel Corp but assured workers it would remain under some level of American oversight. "That means nobody's going to be able to steal your industry," he told steelworkers. "At 25 per cent, they can sort of get over that fence; at 50 per cent, they can no longer get over the fence." Later, he confirmed in a social media post that aluminium tariffs would also rise to the same level. Critics argue that raising steel and aluminium tariffs to 50 per cent could severely impact foreign producers, provoke retaliatory actions from trade partners, and ultimately burden American manufacturers and consumers with higher costs amid renewed trade tensions.

Trump signs order to double steel, aluminum tariffs to 50%

The Mainichi

19 hours ago

Business
The Mainichi

Trump signs order to double steel, aluminum tariffs to 50%

WASHINGTON (Kyodo) -- U.S. President Donald Trump on Tuesday signed an order to double tariffs on steel and aluminum imports to 50 percent, reigniting concerns over supply chain disruptions and a prolonged global trade war. The additional tariffs, which will take effect at a minute past midnight, suggest that Trump has no intention of backing away from his aggressive trade strategy. Trump unveiled his plan to double the tariff rate in a speech delivered Friday at a United States Steel Corp. plant in Pennsylvania, where he hailed Nippon Steel Corp.'s commitment to make a huge investment in the iconic but struggling American producer. Trump has said the move is aimed at protecting domestic metal markets, but has not explained in any detail why doubling the recently imposed levy is already needed. The increase comes as the Trump administration has seen little progress in reaching trade deals with major U.S. trading partners since he placed a 90-day pause on part of his so-called reciprocal tariffs in April to make time for negotiations. Trump's order also comes as the legitimacy of his tariffs is under scrutiny by U.S. courts and amid renewed trade tensions with China. In mid-March, the Trump administration placed 25 percent tariffs on all steel and aluminum imports, marking the first imposition of such protectionist measures on an industry sector basis since Trump took office for a nonconsecutive second term in January. He has framed higher tariffs as a means to protect national security, citing Section 232 of the Trade Expansion Act of 1962 as the legal basis.

Will double tariffs on foreign steel from 25% to 50%, says Trump

Business Standard

5 days ago

Business
Business Standard

Will double tariffs on foreign steel from 25% to 50%, says Trump

By Josh Wingrove and Joe Deaux President Donald Trump said he would be increasing tariffs on steel and aluminum to 50 per cent from 25 per cent, saying the move would help protect American workers, as he visited a United States Steel Corp. plant on Friday. Trump had gone to the plant near Pittsburgh to champion an expected deal between US Steel and Japan's Nippon Steel Corp. as one that would ensure the iconic American firm remains US-owned and operated, even as many details on the agreement remain vague. He said the steel tariff increase would benefit the new venture's American operations. 'I believe that this group of people that just made this investments right now are very happy, because that means that nobody's going to be able to steal your industry,' Trump said. 'It's at 25 per cent, they can sort of get over that fence, at 50 per cent they can no longer get over the fence.' Trump announced the increased steel tariffs at the event and said he would also raise aluminum rates in a post to his Truth Social platform after the rally. The post said the new rates would become 'effective Wednesday, June 4.' The tariff announcement capped a tumultuous stretch that saw a trade court rule his sweeping 'reciprocal' tariff regime illegal, only for an appeals court to offer a stay keeping the levies temporarily in place. Earlier Friday, Trump also registered his frustration with China — which he accused of reneging on a tariff truce negotiated earlier this month — raising the prospect of additional import taxes. The new 50 per cent level also offers a backstop for Trump's promise that the US Steel-Nippon deal, which he opposed on the campaign trail, would benefit steelworkers in the critical battleground state of Pennsylvania. The deal was opposed by the United Steelworkers, who worried Japanese ownership could see capacity reduced and jobs shifted to other plants. 'There's a lot of money coming your way,' Trump added, as he spoke in front of signs reading 'The Golden Age' — a reference to the economic boom he says his policies will unleash — as well as 'American Steel' and 'American Jobs.' Shares of other US steel companies including Nucor Corp., Cleveland-Cliffs Inc. and Steel Dynamics Inc. rallied in after-hours trading. Cleveland-Cliffs shares jumped more than 15 per cent, while Steel Dynamics and Nucor are up at least 5 per cent. Trump said US Steel workers would receive a $5,000 bonus soon and that $2.2 billion of the $14 billion proposed investment would be earmarked to increase steel production at the Mon Valley Works plant where he was speaking. Trump said $7 billion would be spent to modernize steel mills, expand ore mining and build new facilities in Indiana, Minnesota, Alabama and Arkansas. He also said US Steel wouldn't announce layoffs or outsourcing and that its blast furnaces will remain at 'full capacity' for at least 10 years. The US imports about 17 per cent of its steel needs, according to figures from Morgan Stanley, with the majority coming from Canada, Brazil and Mexico. Construction companies have warned levies are likely to increase the cost of critical building materials, reducing the supply and increasing the cost of new housing. The event had the tone of a victory lap, with Trump receiving a Pittsburgh Steelers jersey and a golden hard hat during his visit, but despite the celebratory tone, critical details on the deal were unclear ahead of Friday's event. Investors are eager for any insight into the agreement a week after he first announced that he would approve the deal. Trump's decision marked a stunning reversal on a transaction that he had fiercely opposed on the campaign trail, but the president cast the shift as coming with concessions from Nippon Steel that benefitted steelworkers. 'Every time they came in, the deal got better and better and better for the workers,' Trump said, stressing that US Steel would remain headquartered in Pittsburgh. The president last week cast it as a 'planned partnership' bringing investments to the US — not as an outright sale of an American company. Even after Trump's announcement last week, work continued on the terms, including what veto powers the US government will retain over the board of the US Steel subsidiary. The Friday event offers to cap what has been a politically contentious and tumultuous path for Nippon Steel's bid to purchase an iconic American firm — a lengthy saga that left both companies in limbo. Nippon Steel initially proposed a $14.1 billion transaction for US Steel. 'The commitments have been made,' Representative Dan Meuser, a Pennsylvania Republican, said in an interview at the Irvin Works site ahead of Trump's remarks. 'They're not going to blow this deal,' he added, calling it 'as good as done.' The deal put forward to the Committee on Foreign Investment in the US, or Cfius, a secretive panel which reviewed the proposed takeover, included the original $55-per-share acquisition along with extra investment, according to people familiar with the matter. As part of the agreement, the US will retain certain powers, including over board membership, according to people familiar. US Senator David McCormick, a Pennsylvania Republican, has cast that arrangement as a 'golden share,' thought it is not clear if it would amount to an equity stake or just give the government some form of power to intervene. McCormick told CNBC in an interview that the structure will be 'a US CEO, a US majority board, and then there'll be a golden share, which will essentially require US government approval of a number of the board members, and that'll allow the United States to ensure production levels aren't cut and things like that.' Both Trump and his predecessor, Joe Biden, opposed the sale during the 2024 presidential election, saying US Steel should remain in American hands. Biden killed the deal citing national security concerns just before Trump took office. Trump then ordered a review of that decision before announcing the partnership last week. Advocates for a deal between Nippon Steel and US Steel have long argued that the Japanese company would help revitalize the American firm with investments. The next steps to consummate the deal are not entirely clear. Both sides need to finalize their agreement through the Cfius review process. It's not clear whether the text of any mitigation agreement — which is likely to spell out what powers the US government retains — is finalised.

Takeaways From Trump's Visit to a United States Steel Corp. Plant

Yahoo