Trump says he plans to double steel and aluminum tariffs

U.S. President Donald Trump has announced plans to double tariffs on steel and aluminum imports to 50 per cent, starting next Wednesday. The decision was made public during a rally at U.S. Steel’s Mon Valley Works–Irvin Plant near Pittsburgh. Trump stated that the increased levies will help “further secure the steel industry in the United States.”

In a social media post following the rally, Trump also mentioned that tariffs on aluminum would be raised to 50 per cent. The President emphasized the positive impact this decision would have on the steel and aluminum industries in the U.S., stating that it would be a significant boost for workers in these sectors.

The Canadian government has not yet issued a response to this announcement. However, it is important to note that Canada is the largest steel supplier to the United States, accounting for nearly 25 per cent of all imports in 2023. Approximately one-quarter of all steel used in America is imported.

Trump had initially considered a 40 per cent tariff before settling on the 50 per cent figure. As a result of these tariffs, the government’s producer price index has shown a 16 per cent increase in the price of steel products. This decision has been met with criticism from Canadian labor unions, such as the Canadian Labour Congress, who view it as a direct attack on Canadian workers.

The Canadian Chamber of Commerce has also expressed concerns about the impact of these tariffs on the cross-border supply chains in steel and aluminum. In 2018, under the last round of steel and aluminum tariffs, there was a significant net negative job loss in the U.S. Economists have warned that tariffs on steel and aluminum could be costly for American companies and consumers.

Trump previously imposed a 25 per cent tariff on steel imports and a 10 per cent tariff on aluminum imports in March 2018. The decision to double these tariffs has raised concerns about its potential impact on both the U.S. and Canadian economies. The Canadian steel industry has warned that the return of these tariffs could lead to disruptions and job losses, similar to those experienced in 2018.

In conclusion, the decision to double tariffs on steel and aluminum imports is likely to have far-reaching consequences for both the U.S. and Canadian economies. It remains to be seen how this decision will impact trade relations between the two countries moving forward.