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The latest move by former President Donald Trump to impose tariffs on steel and aluminum imports into the US has sent shockwaves through commodity markets and raised concerns about potential trade wars. The tariffs, set at 25 per cent, are seen as a response to foreign players flooding the US market with these metals, undercutting domestic producers.
The decision, announced from the Oval Office on Monday evening, is part of Trump’s ongoing protectionist agenda. The tariffs are set to go into effect on March 4 and will apply to all imports without any exclusions. This has raised concerns about the impact on US allies like Canada and Mexico, as well as American manufacturers who rely on imported steel and aluminum.
Trump framed the move as a way to “make America rich again” and protect American workers in the steel and aluminum industries. Peter Navarro, a senior counsellor for trade and manufacturing in the White House, praised the decision as a way to end foreign dumping and boost domestic production.
This is not the first time Trump has imposed tariffs on steel and aluminum imports. He previously imposed similar tariffs in 2018, before negotiating exemptions for certain countries. President Joe Biden, who inherited these tariffs when he took office in 2020, had negotiated deals with the EU, UK, and Japan to allow duty-free exports of these metals to the US.
However, officials now say that these agreements will be nullified, and all steel and aluminum imports will be subject to tariffs. The product exclusion process, which allowed for exemptions, will also be eliminated, according to the White House.
The move is expected to have immediate repercussions, with the EU likely to retaliate with tariffs of its own. In 2018, the EU imposed tariffs on US goods in response to Trump’s tariffs, and these were only lifted as part of Biden’s agreements in 2021.
As news of the tariffs broke, metals prices surged in the US, with aluminum prices up by 10 per cent and copper futures reaching their highest level since 2020. The impact of these tariffs on the global economy remains to be seen, but they are already causing ripples in commodity markets.
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