Golden Finance reported that on May 30 local time, at a rally in Pennsylvania, the United States, US President Trump made a major announcement, stating that the tariff on imported steel would be significantly raised from the current 25% to 50%. Subsequently, Trump further clarified through social media platforms that this decision would officially take effect on June 4th. The White House also issued a notice on social media on the same day, emphasizing that “to further protect the US steel industry from foreign and unfair competition, starting from next week, the US import tariff on steel will be raised from 25% to 50%.”
Trump’s statement this time occurred against the backdrop of the advancement of his series of trade policies. As early as February 10th, Trump signed an executive order, announcing a 25% tariff on all steel and aluminum imported to the United States. This measure officially took effect on March 12th. This time, the steel tariffs have been raised significantly again, aiming to further consolidate the position of the US steel industry. Trump said in a speech at the factory of US Steel in Pennsylvania, “We will increase tariffs by 25%.” Raising the tariff on imported steel in the United States from 25% to 50% will further consolidate the steel industry in the United States.
The news of this tariff adjustment instantly caused a huge stir in the global trade market. As a major global importer of steel, the changes in the tariff policy of the United States have a profound impact on the global steel industry chain. About 25% of the steel in the United States relies on imports. After the tariff increase, the cost of foreign steel products entering the US market will increase significantly, which will undoubtedly weaken the competitiveness of foreign steel products in the US market.
From the domestic perspective of the United States, the steel industry has always been a key focus and support area for Trump. In recent years, the US steel industry has been confronted with fierce competition from the international market, and some US steel enterprises have been under considerable operational pressure. Trump hopes to reduce the import volume of foreign steel by raising tariffs, thereby creating more market space for domestic steel enterprises in the United States, promoting the recovery and development of the domestic steel industry, and increasing related job opportunities.
However, this policy adjustment has also raised many concerns. For downstream enterprises in the United States that extensively use steel as raw materials, the significant increase in steel tariffs means that production costs will rise sharply. Take the automotive manufacturing industry as an example. It takes about 0.5 tons of steel to produce a car. If the tariff is raised from 25% to 50%, it will lead to a significant increase in the steel cost of a single car. This may put car manufacturers in a dilemma: either absorb the cost themselves and compress the profit margin, or pass the cost on to consumers, resulting in an increase in car prices. Weaken the competitiveness of American automobiles in the global market. Similarly, industries such as construction and mechanical manufacturing will also be impacted to varying degrees. The increase in operating costs in these industries may affect the investment decisions and expansion plans of related enterprises, thereby exerting a certain inhibitory effect on the overall economic growth of the United States.
From an international perspective, the United States’ current increase in steel tariffs may trigger a chain reaction and trade retaliatory measures in other countries. Previously, after the United States imposed a 25% tariff on all imported steel and aluminum on March 12th, it triggered criticism and dissatisfaction from multiple parties including the European Union, Japan and Australia. The value of steel and aluminum products that Japan exports to the United States each year exceeds 330 billion yen (1 US dollar is approximately 148.46 yen), and the related industries are facing a huge impact due to the US tariff measures. The Prime Minister of Australia has also said that the decision of the US government to refuse to implement “tariff exemptions” for steel and aluminum products imported from Australia is “completely unreasonable”.
The European Commission even issued a communique, announcing the imposition of countermeasures tariffs on 26 billion euros (1 euro is approximately 1.09 US dollars) worth of US goods. This time, the United States’ further increase in steel tariffs will undoubtedly intensify global trade tensions and bring more uncertainties to the already fragile global economic recovery process. Subsequently, the global market will continue to closely monitor the specific implementation of the US steel tariff adjustment and the response measures of various countries. As a result, the international trade pattern may undergo profound changes.
Related Topics:
