Higher Tariffs on Steel and Aluminum Imports Go Into Effect

SEATTLE (Scrap Monster): U.S. tariffs on steel and aluminum imports doubled on Wednesday, as President Trump continued to ratchet up levies on foreign metals that he claims will help revitalize American steel mills and aluminum smelters.

The White House called the increased tariffs, which rose to 50 percent from 25 percent just after midnight Eastern time, a matter of addressing “trade practices that undermine national security.” They were announced during Mr. Trump’s visit to a U.S. Steel mill last week, and appear to be aimed at currying favor with steelworkers and the steel industry, including those in swing states like Pennsylvania, where U.S. Steel is based.

The higher levies have already rankled close allies that sell metal to the United States, including Canada and Europe. They have also sent alarms to automakers, plane manufacturers, home builders, oil drillers and other companies that rely on buying metals.

In an executive order, Mr. Trump said the higher tariffs would “more effectively counter foreign countries that continue to offload low-priced, excess steel and aluminum in the United States market and thereby undercut the competitiveness of the United States steel and aluminum industries.”

Kevin Dempsey, the president of the American Iron and Steel Institute, an industry group, praised the move. He said China and other countries oversupplied the international market, making it harder for U.S. producers to compete.

“Given these challenging international conditions that show no signs of improvement, this tariff action will help prevent new surges in imports that would injure American steel producers and their workers,” Mr. Dempsey said.

But companies that use steel and aluminum to make their products criticized the tariffs, saying they would add costs for American consumers.

Robert Budway, the president of the Can Manufacturers Institute, said doubling the steel tariff would further increase the cost of canned goods at the grocery store.

“This cost is levied upon millions of American families relying on canned foods picked and packed by U.S. farmers and can makers,” he said.

Wednesday’s increase is the latest in a mounting array of import taxes that Mr. Trump has announced since returning to the Oval Office in January, including the 25 percent tariff on steel and aluminum in March. Taken together, the president’s trade tactics have increased concerns of a global downturn and heightened corporate America’s worries about the cost of doing business.

Economists have pointed out that tariffs on factory inputs such as metals risk slowing U.S. manufacturing, since they raise prices for factories. By adding to the cost of making cars, drilling for oil and building data centers, higher steel tariffs could slow other goals of the Trump administration.

Courtesy: www.nytimes.com