President Donald Trump has ordered an import load of 25% on all steel and aluminum that enter the US in a large extension of existing trade barriers.
The rates, which will increase the costs of importing the metals into the US, come despite warnings for retribution of some political leaders in Canada – America's largest supplier of the metals – as well as other countries.
American companies that depend on import also expressed concern, but Trump has said that his plans will stimulate domestic production.
He warned that there would be no exceptions and said he “simplified” the rules, which will come into force on March 4.
“This is a big problem, the beginning of making America again,” said Trump.
“Our nation requires that steel and aluminum are made in America, not in foreign countries,” he added.
When asked whether the rates could increase the prices for consumers, the American president replied: “Ultimately, it will be cheaper.”
“It's time for our large industries to come back to America … This is the first of many,” he added, suggesting that other rates can concentrate on pharmaceutical and computer chips.
The US is the world's largest importer of steel, where Canada, Brazil and Mexico are counted as top three suppliers.
Canada was only good for more than 50% of the aluminum imported into the US last year. If the rates come into effect, they are expected to have the most important impact on Canada.
Late on Monday, the Canadian Innovation Minister, Francois-Phillippe Champagne, said that the rates were “totally unjustified”.
“Canadian steel and aluminum support important industries in the US through defense, shipbuilding, energy to automotive,” said Champagne. “This makes North -America more competitive and safer.”
In anticipation of the announcement, Ontario Prime Minister Doug Ford accused, whose province accused much of the steel production of Canada, Trump accused of “shifting goal posts and constant chaos, which endangers our economy”.
The lobby group for Canadian steel makers called on the Canadian government to take revenge on the US “immediately”, while Kody Blois, a leading member of the Canadian liberal party of Canada, said his country was looking for ways to trade relationship with the To reduce the US.
“This has been completely increased what a very strong partnership has been,” he told BBC Newshour prior to the official order.
In the meantime, the stock prices of the big American steel makers rose on Monday pending the order, with the price of Cleveland-Cliffs that jumped nearly 20%. Prices for steel and aluminum also jumped.
The answer in a large part of the rest of the market was filled in, which reflected about how serious Trump is about his plans, given his track record of postponing rates or negotiating exemptions for the rules.
In 2018, during his first term, Trump announced the rates of 25% on steel and 15% on aluminum, but eventually negotiated carve-outs for many countries, including Australia, Canada and Mexico.
'Repetition of 2018'
“This is a kind of repetition of 2018,” says Douglas Irwin, a professor in the economy at Dartmouth College.
“The biggest question is the uncertainty about whether this is a negotiating tactic or whether he simply does not want to talk to other countries and really want to help the steel industry in this way.”
Last week the Trump ordered the import duties of 25% in all Canadian and Mexican products, only to postpone that plan for 30 days. He also brought new American taxes of 10% to all Chinese goods that entered the US, which brought in retaliation from China.
A rate is a domestic tax that is levied on goods when they enter a country in proportion to the value of import.
The prospect that higher rates are being introduced at the entry into the US is with regard to many world leaders because it will make it more expensive for companies to sell goods in the largest economy in the world.
Taxes are a central part of Trump's economic vision. He sees them as a way to grow the American economy, to protect jobs and increase tax revenues.
But there are also concerns about the effect in the US, where many manufacturers in the US use steel and aluminum in their products and are now confronted with the chance of extra costs.
Industrial groups from construction to CAN makers warned of the hit.
In the first term of Trump, despite many exemptions, the rates increased the average price of steel and aluminum in the US by 2.4% and 1.6% respectively, according to the US International Trade Commission.
Stephen Moore, who advised Trump's campaign on economic issues in 2016 and is currently a senior fellow on the Heritage Foundation, a conservative think tank in Washington, said he did not think that rates for steel and aluminum were an effective way to jobs to create, where the experience was noted and the experience noticed and the experience of the first term.
He said that although Trump was “deadly serious” about trade, he thought the plan was “about the rest of the world's attention”.
“Just about everything Donald Trump does in Washington is a negotiating tactics,” he said.
Trump officials said that the last steps were aimed at stopping countries such as China and Russia to avoid rates by sending cheap products through other countries.
The American president said he introduced new standards for which steel should be “melted and cast” and aluminum “melted and cast” in North America.
Nick Iacovella, a spokesperson for Coalition for a Proerous America, who represents Staal-Makers and supports the rates, said his group was most concerned about an increase in steel imports from Mexico, above the levels agreed in 2019.
But he noted that Canada sends much more goods to the US than it imports – a trade deficit that has been an important problem for Trump.
“There are still imbalances with the trade relationship of the Canadian and the United States that needs to be tackled,” he said.
He added: “I don't think they are planning to bring a one-size-fits-fits-all Hammer approach here, but I think I think in the beginning now what the president say … [is] both countries [Canada and Mexico] Abuse their relationship with the US and we are going to do something about it. “
