Wake up, honey: New tariffs just dropped. Over the weekend, President Trump told reporters he planned to announce 25-percent tariffs on all imported aluminum and steel. If they materialize, the tariffs would hit several industries hard, especially automakers and companies along their supply chains.
Trump didn’t share any details on the tariffs but said he was considering duties on pharmaceuticals, oil, and semiconductors. He may also wade into a trade war with the EU by implementing new tariffs on its goods. Unlike his earlier announcement of tariffs against Canada and Mexico, the metal tariffs would impact all countries sending goods into the U.S. and are not targeted at specific governments.
The steel industry here has had a rough time over the last year, as imported metals have made it difficult to compete. That situation may not improve even with tariffs, however. Nippon Steel’s acquisition of U.S. Steel was blocked by President Biden and is opposed by Trump, leaving questions about its future and the people it employs.
The Canada-Mexico tariffs announcement sent North American businesses into a frenzy and threatened to throw a big wrench into the auto industry’s gears. While those duties are on hold until March, tariffs on steel and aluminum would have a similar impact. Trump is likely using the threat of tariffs as a negotiating tool, but one of the early effects has been a push for more trade between Europe and Canada/Mexico instead of a meaningful move to restore ties with the United States.
[Images: Volkswagen, Mini/BMW, Toyota]
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