President Donald Trump has raised a 25% import tax on all steel and aluminum, entering the United States in a great expansion of existing commercial barriers.
Tariffs that will increase the costs of importing metals in the United States come despite avenge of revenge warnings from some political Canada leaders – the largest metal supplier in America – like other countries.
Imports -dependent US -dependent businesses also sparked concerns, but Trump said his plans would strengthen domestic production.
He warned that there would be no exceptions, saying that “simplifies” the rules that should come into force on March 4.
“This is a big deal, the beginning of making America rich again,” Trump said.
“Our nation requires steel and aluminum to be made in America, not in foreign lands,” he added.
Asked if tariffs could increase consumer prices, the US president replied: “In the end, it will be more cheaper.”
“It's time for our great industries to return to America … This is the first of many,” he added, suggesting that other tariffs can focus on pharmaceuticals and computer chips.
The United States is the largest importer in the world, counting Canada, Brazil and Mexico for his three three suppliers.
Canada alone represents over 50% of aluminum imported in the United States last year. If the tariffs come into force, they are expected to have the most significant impact on Canada.
Late on Monday, the Minister of Innovation in Canada, Champagne of Francois-Philip, said the tariffs were “completely unjustified”.
“Canadian steel and aluminum maintenance of key industries in the United States from defense, shipyard, energy to the car,” Champagne said. “This makes North America more competitive and secure.”
Prior to the announcement, Ontario Doug Ford Prime Minister, whose province is home to much of the production of steel in Canada, accused Trump of “shifting goals and permanent chaos, putting our economy at risk.”
The Lobby Group for Canadian steel manufacturers called on the Canadian government to avenge the United States “immediately” while Cody Bloa, a leading MP from the ruling Liberal Party in Canada, said his country was looking for ways to reduce its trade relations with the United States.
“This is completely hindering what was a very strong partnership,” he told the BBC Newshour before the official order.
Meanwhile, stock prices of major US steel manufacturers increased on Monday in anticipation of the order, with the price of Cleveland-Cliffs jumping nearly 20%. Prices for steel and aluminum also jumped.
The answer to much of the rest of the market was muted, reflecting the questions about how serious Trump was about his plans, given his attempt to delay tariffs or negotiations to release the rules.
In 2018, during his first term, Trump announced 25% rates for steel and 15% for aluminum, but ultimately contracts a way out for many countries, including Australia, Canada and Mexico.
“It's like a 2018 replay,” said Douglas Irwin, Professor of Economics at Dartmut College.
“The biggest question is the uncertainty whether it is a negotiation tactic or he just doesn't want to talk to other countries and really wants to help the steel industry that way.”
Last week, Trump ordered imports of 25% for all Canadian and Mexican products just to slow down this plan for 30 days. It also introduced new US taxes of 10% for all Chinese goods entering the United States, which caused revenge from China.
The tariff is an internal tax imposed on the goods when they enter a country proportional to the value of imports.
The prospect of higher tariffs to be introduced on US imports refers to many world leaders, because it will make companies more expensive to sell goods in the biggest economy in the world.
Taxes are a central part of Trump's economic vision. He views them as a way of expanding the US economy, protecting jobs and increasing tax revenue.
But there are also concerns about the effects in the United States, where many manufacturers in the United States use steel and aluminum in their products and are now faced with additional costs.
Industrial groups from construction to canned people have warned of the hit.
In the first term of Trump, tariffs, despite many releases, increased the average cost of steel and aluminum in the United States by 2.4% and 1.6%, according to the US Commission on International Trade, respectively.
Stephen Moore, who advised Trump's Economic Affairs campaign in 2016 and is currently a senior associate at the Inheritance Foundation, a conservative Thinktank, based in Washington, said he did not believe that steel and aluminum tariffs are an effective way to create In jobs, noting the experience of the first term.
He said that while Trump is “deadly serious” regarding trade, he believes the plan is “to get the rest of the world's attention.”
“Almost everything Donald Trump does in Washington is a tactic for negotiation,” he said.
Trump officials have said the latest moves are aimed at stopping countries such as China and Russia to avoid tariffs by routing low -cost products through other countries.
The US president said he is introducing new standards that require steel to be “melted and poured” and aluminum to be “melted and thrown” in North America.
Nick Jacob, a spokesman for a coalition for a prosperous America, who represents steel manufacturers and supports tariffs, said his group was most concerned about the Import of Mexico Steel Imports exceeded in 2019.
But he noted that Canada sends many more goods to the United States than imports – a trade deficit, which is a key problem for Trump.
“There are still imbalances with trade relations in Canada and the United States to be addressed,” he said.
He added: “I don't think they plan to take a hammer approach of one size, but I think at least at the moment I think what the president says … (e) both sides (Canada and Mexico) abuse their relations with the US and we will do something about it. “