President Trump’s tariffs on foreign steel and aluminum went into effect this week, escalating America’s trade tensions with global competitors, including close allies already affected by his unpredictable trade policies.
Trump’s tariffs of 25 percent on imported metals from any country are expected to raise costs for American manufacturers of products like cars, tin cans, solar panels and other goods, potentially slowing down the U.S. economy. Though many domestic steel and aluminum makers support the move, the tariffs are likely to exacerbate trade disputes, with foreign governments, including those in Canada and Europe, planning retaliatory measures.
This is not the first time Trump has used tariffs as a weapon. Last week, he levied tariffs on imports from Canada, Mexico, and China, before backtracking on some of them. His threat of further tariffs includes foreign cars and additional countries that he accuses of discriminating against the United States.
The metal tariffs could hurt American manufacturers, since steel and aluminum are used to make so many other products. Higher costs for basic inputs for companies could harm manufacturers who employ far more Americans than steel mills and aluminum smelters do, thwarting Trump’s goal to bolster U.S. manufacturing.
Economic studies have shown that the initial imposition of metal tariffs encouraged buyers to purchase more from U.S. sources, increased domestic prices, and expanded production. However, the study also found that the tariffs raised production costs for firms making automobiles, tools, and industrial machinery, shrinking production in those and other downstream industries.
The Trump administration’s approach has led to a market slump and caused U.S. allies to go on the defense as they try to understand what the president actually wants. The prospect of higher costs has encouraged other American industries to lobby for tariffs on their foreign competitors to protect their businesses. Williams-Olson
Source: https://www.nytimes.com/2025/03/12/us/politics/trumps-tariffs-on-steel-and-aluminum-go-into-effect.html
