Trump enforces 25% tariffs on steel, aluminum

Trump’s administration expanded steel and aluminum tariffs on Wednesday, enforcing 25% duties with “no exceptions,” as the White House pledged.

Trump’s Tariffs: Impact on Industries and Consumer Prices

President Donald Trump imposed 25% tariffs on steel and aluminum, increasing production costs across industries like home appliances, automobiles, and beverage cans. These higher costs could eventually raise consumer prices.

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Since returning to office, Trump has imposed significant tariffs on key U.S. trade partners, including Canada, Mexico, and China. Although he reduced some levies for neighboring countries, he has scheduled new tariffs to take effect on April 2.

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The new tariffs will hit Canada hard, as it supplies around 50% of U.S. aluminum imports and 20% of its steel imports, according to an analysis by EY’s chief economist, Gregory Daco.

In addition to Canada, Brazil and Mexico export significant amounts of steel to the U.S., while aluminum imports come from countries like the United Arab Emirates and South Korea.

Trump’s Tariff Hike: Potential 50% Duties on Canadian and Mexican Imports

Wednesday’s new tariffs build on previous duties, potentially increasing rates on certain steel and aluminum products from Canada and Mexico to 50% unless they comply with the U.S.-Mexico-Canada Agreement (USMCA).

Despite concerns about Trump’s trade policies and fears of a possible recession, which have contributed to financial market declines, Trump dismissed the risks. He insisted that he does not expect an economic downturn and downplayed recent stock market losses.

Tensions Rise as U.S. and Canada Exchange Tariff Threats

Trade tensions between the U.S. and Canada escalated as Trump threatened to double tariffs on Canadian steel and aluminum to 50% just a day before they took effect.

In response to earlier U.S. tariffs, Ontario imposed an electricity surcharge on three American states, provoking an angry reaction from Trump.

As Washington and Ottawa exchanged tariff threats, trade relations became more strained, with Trump pushing forward controversial plans regarding Canada’s northern region.

However, after negotiations, Ontario suspended the surcharge.

White House spokesman Kush Desai said Trump “leveraged the American economy” to “deliver a win for the American people.”