Steel and Aluminum Tariffs: What You Need to Know
Trump imposes increased tariffs on steel and aluminum imports, setting them at 50% level.
Here's a lowdown on the latest developments surrounding tariffs on steel and aluminum imports announced by the U.S. administration and the ripples it's causing across industries and economies, barring the UK.
The situation
Donald Trump declared his intention to boost tariffs on steel and aluminum, claiming the move will further secure the U.S. steel industry. The world's largest steel importer, apart from the EU, took in an impressive 26.2 million tons last year, according to Reuters. The tariff hike may trigger a surge in steel prices, affecting both businesses and consumers alike.
In the construction sector, costs of essential building materials are expected to skyrocket, curtailing supplies and ultimately raising the cost of new housing projects [@Bloomberg].
The Journey So Far
After his inauguration, Trump was the first to implement tariffs on steel and aluminum. He announced these on February 10 of 2018, citing the need to readjust the volume of steel imports flowing into the United States [@WhiteHouse]. At the time, the acting U.S. Secretary of Commerce asserted that the country was importing "in such quantities and under such circumstances that threaten to impair the national security" of the U.S. [@WhiteHouse]
Potential Impact
- Job Market: To cater to the protectionist measures, the steel and aluminum industries could potentially see a surge in local job creation, with an estimated 140,000 jobs. However, steel-using industries may see job losses due to increased expenses resulting from higher input costs 1.
- Global Supply Chain: With reduced foreign demand stemming from higher tariffs, global supply chains might experience disruptions, leading to economic instability in tariff-affected countries 1.
- Businesses and Consumers: The price hike in steel and aluminum could strain businesses, with potential higher operational costs. If these increased costs are passed along to the consumers, it could translate to higher consumer prices 1.
- Homebuyers and Real Estate: The increased cost of vital construction materials could push up the prices of new housing projects, making them less affordable for consumers 1. This could potentially stall construction projects and impact the broader housing market and economic growth in the real estate sector 1.
For nations other than the UK, the tariffs pose the challenge of increased export costs, which may influence their trade balances and economic stability. The impact varies depending on each country's reliance on steel and aluminum exports and their ability to negotiate exceptions or alternative trade agreements.
Stay tuned for more updates on this ever-evolving economic landscape. Follow us on our Telegram channel @expert_mag for the latest news.
- The tariffs on steel and aluminum, announced by the U.S. administration, are not only affecting the steel industry but also causing ripples in the finance sector due to potential increases in operational costs for businesses.
- The change in policy-and-legislation regarding tariffs on steel and aluminum imports has reverberated in the political arena, with discussions surrounding its impact on job market, global supply chain, and business-consumer relationships.
- The developments in the steel and aluminum tariffs have garnered attention in the realm of general-news, with reports focusing on its potential affect on industries like construction, homebuyers, and real estate, as well as on the global economy and national security.
