President Donald Trump moved to substantially raise tariffs on steel and aluminium imports on Monday, cancelling exemptions and duty-free quotas for major suppliers Canada, Mexico, Brazil and other countries in a move that could boost the risk of a multi-front trade war.
Trump signed proclamations that raised the tariff rate on aluminium imports to 25 per cent from the previous 10 per cent that he imposed in 2018 to aid the struggling sector. His action reinstates a 25 per cent tariff on millions of tons of steel imports and aluminium imports that had been entering the US duty free under quota deals, exemptions and thousands of product exclusions.
The proclamations were extensions of Trump’s 2018 Section 232 national security tariffs to protect steel and aluminium makers. A White House official said the exemptions had eroded the effectiveness of these measures.
Trump also will impose a new North American standard requiring steel imports to be “melted and poured” and aluminium to be “smelted and cast” in the region to curb imports of minimally processed Chinese steel into the US
The order also targets downstream steel products that use imported steel for tariffs.
Trump’s trade adviser Peter Navarro said the measures would help US steel and aluminium producers and shore up America’s economic and national security.
“The steel and aluminium tariffs 2.0 will put an end to foreign dumping, boost domestic production and secure our steel and aluminium industries as the backbone and pillar industries of America’s economic and national security,” he told reporters.
“This isn’t just about trade. It’s about ensuring that America never has to rely on foreign nations for critical industries like steel and aluminium.”
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