Trump doubles steel and aluminum import tariffs

[Petroleum economist]

Reuters - WEST MIFFLIN, Pennsylvania (Reuters) -U.S. President Donald Trump said on Friday he planned to increase tariffs on imported steel and aluminum to 50% from 25%, ratcheting up pressure on global steel producers and deepening his trade war. "We are going to be imposing a 25% increase. We're going to bring it from 25% to 50% - the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States," he said at a rally in Pennsylvania.

Trump announced the higher tariffs just outside Pittsburgh, where he was talking up an agreement between Nippon Steel and U.S. Steel. Trump said the $14.9 billion deal, like the tariff increase, will help keep jobs for steel workers in the U.S. He later posted on social media that the increased tariff would also apply to aluminum products and that it would take effect on Wednesday.

Shares of steelmaker Cleveland-Cliffs Inc surged 26% after the market close as investors bet the new levies will help its profits.

The doubling of steel and aluminum levies intensifies Trump's global trade war and came just hours after he accused China of violating an agreement with the U.S. to mutually roll back tariffs and trade restrictions for critical minerals. Canada's Chamber of Commerce quickly denounced the tariff hike as "antithetical to North American economic security." "Unwinding the efficient, competitive and reliable cross-border supply chains like we have in steel and aluminum comes at a great cost to both countries," Candace Laing, president of the chamber, said in a statement.

Australia's centre-left government also condemned the tariff increase as "unjustified and not the act of a friend." "They are an act of economic self-harm that will only hurt consumers and businesses who rely on free and fair trade," Trade Minister Don Farrell said in a statement. Australia, a key U.S. security ally in the Indo-Pacific, would "continue to engage and advocate strongly for the removal of the tariffs," Farrell said.

Trump spoke at U.S. Steel's Mon Valley Works, a steel plant that symbolizes both the one-time strength and the decline of U.S. manufacturing power as the Rust Belt's steel plants and factories lost business to international rivals. Closely contested Pennsylvania is also a major prize in presidential elections.

The U.S. is the world's largest steel importer, excluding the European Union, with a total of 26.2 million tons of imported steel in 2024, according to the Department of Commerce. As a result, the new tariffs will likely increase steel prices across the board, hitting industry and consumers alike.

Steel and aluminum tariffs were among the earliest put into effect by Trump when he returned to office in January. The tariffs of 25% on most steel and aluminum imported to the U.S. went into effect in March, and he had briefly threatened a 50% levy on Canadian steel but ultimately backed off.

Under the so-called Section 232 national security authority, the import taxes include both raw metals and derivative products as diverse as stainless-steel sinks, gas ranges, air conditioner evaporator coils, horseshoes, aluminum frying pans and steel door hinges.

The 2024 import value for the 289 product categories came to $147.3 billion with nearly two-thirds aluminum and one-third steel, according to Census Bureau data retrieved through the U.S. International Trade Commission's Data Web system.

By contrast, Trump's first two rounds of punitive tariffs on Chinese industrial goods in 2018 during his first term totaled $50 billion in annual import value.

Trump was at it again. Most likely somebody at the plant told to him that 50% is more than 25% and he said “I like that”. The notice period (four days) is silly.

Increasing steel and aluminum tariffs from 25% to 50% will not increase US steel and aluminum manufacturing any further. It will take years to build new plants. The 26% jump in Cleveland-Cliffs Inc shares suggests that investors anticipate that Cleveland steel prices will go up, together with the higher prices paid for steel and aluminum imports.

Similar to 2017, creation of long-term steel manufacturing jobs will come at the expense of an immediate loss of manufacturing jobs at companies who use steel and aluminum for finished goods (cars, equipment) for export. Their competitive position will be undermined. Inflation will go up.

US oil industry will be hit by higher tubing, casing costs, and pipeline costs, as well as prices for steel used in facilities construction.

Hopefully the reprieve granted by the appeal court on declaring Trump not empowered for setting tariffs will be lifted after the 9th of June, and authorization for tariffs will go back from one man to the congress (where it belongs).

[Petroleum economist]

BRUSSELS (Reuters) -The European Commission said on Saturday that it "strongly" regrets an announced increase of U.S. tariffs on steel imports and that the EU is prepared to impose countermeasures.

U.S. President Donald Trump said on Friday he planned to increase tariffs on imported steel and aluminum to 50% from 25%, putting more pressure on global steel producers and deepening his trade war.

"We strongly regret the announced increase of U.S. tariffs on steel imports from 25% to 50%," a European Commission spokesperson said in an emailed statement.

"This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic," the spokesperson said, adding that "the tariff increase also undermines ongoing efforts to reach a negotiated solution".
The spokesperson noted that the European Union had paused its countermeasures to create space for continued negotiations.

"The EU is prepared to impose countermeasures, including in response to the latest U.S. tariff increase," the spokesperson said.
"The European Commission is currently finalising consultations on expanded countermeasures. If no mutually acceptable solution is reached, both existing and additional EU measures will automatically take effect on 14 July — or earlier, if circumstances require," they added.

[aja57]

The Constitution of the U.S. , PE creates a separation of powers between the three branches of government. No where in the Federalist Papers nor in the U.S. Constitution is there “judicial review” . This was granted onto the court itself by the Marbury v Madison case. This has been an excuse for the judiciary to make law when the court is supposed to call “balls and strikes” like John Roberts articulated at his confirmation. Yes, Congress makes and voids law. However, if Congress is not taking action against the Executive branch on this Trump decision ( and they are not) then the court needs to step aside and throw out the lawsuit. It is for Congress to decide whether Trump is overstepping his authority. You don’t like his actions . I get it. I’m not thrilled either but that’s how the system works.