US to impose tariffs on steel, aluminum imports

(VOVWORLD) - US President Donald Trump has said he will impose a 25% tariff on steel imports and 10% tariff on aluminum, a move opposed by many countries due to fear of adverse impacts on economic interests.

The main reason behind the decision from President Trump is that steel imports and aluminum are very important to US manufacturers that use the material, such as makers of cars, planes, boats, and beer cans.

Steel imports account for 1/3 of steel used annually by US businesses while that of aluminum accounts for more than 90% of the US’s yearly domestic consumption.

The current system has caused the US numerous problems, leading to the closure of many steel and aluminum manufacturers. President Trump’s decision is expected to recover those bankrupted manufacturers and create jobs for Americans in accordance with the America First and protectionism policies that President Trump vowed to implement during his election campaign.

Many countries, including Canada, Mexico, Germany, Japan and Brazil have voiced their opposition to the idea. Mr. Trump is not the first to use trade policies to protect US industries of strategic importance. Experts say Mr. Trump’s move reflects his own tactics to attract partners to negotiating tables as by now there has not been any documents or acts signed on this issue. The move is aimed to test response from the US’s trade partners before making any adjustments.

The US political class is being divided over this issue. Many Democrats have voiced their support for this proposal while White House advisers have differing opinions. Republicans in favor of trade liberalization are strongly opposed to the plan.

Feedback

Others