President Donald Trump announced plans to impose a 25% tariff on all steel and aluminum imports, reigniting trade tensions reminiscent of his 2018 metal tariffs policy.
What Happened: The announcement was made during his flight to New Orleans for the Super Bowl, according to Reuters.
Canada, the largest U.S. steel import source with $8.3 billion in 2021 shipments, announced retaliatory tariffs of 25% on U.S. goods. Mexico is the second-largest steel supplier at over $5 billion in imports. Brazil ($3.2 billion), South Korea ($2.8 billion), and Germany ($1.5 billion) round out the top five steel importers to the U.S., according to Statista data.
Prime Minister Justin Trudeau urged Canadians to “choose Canada” in product selections, highlighting the stakes for a country that serves as the largest export market for 36 U.S. states.
The move threatens to disproportionately impact U.S. manufacturing, according to Benn Steil, director of international economics at the Council on Foreign Relations. “Steel-using firms employ over 5 million Americans… Steel-intensive industries account for over 20% of US manufacturing output,” Steil said on X, adding ” At a stroke, Trump is making US manufacturing globally uncompetitive.”
See Also: Trump Says Canada Much Better Off Being The 51st State: The Border With US Is ‘Just A Line’
Why It Matters: While domestic steel producers like U.S. Steel Corp. X and Nucor Corp. NUE stand to benefit from reduced competition, the tariffs pose challenges for steel-consuming industries.
The automotive sector, which previously faced headwinds from similar 2018 tariffs, could see increased production costs. The American Automotive Policy Council, representing Ford Motor Co. F, General Motors Co. GM, and other automakers, has historically opposed such measures, citing risks to the industry’s 7 million American jobs, according to Fox News.
Trump also addressed the pending Nippon Steel NPSCY investment in U.S. Steel, stating the U.S. government would permit investment but prevent majority control.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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