U.S. President Donald Trump’s increased steel and aluminum tariffs went into effect on Wednesday. At 50 percent, they’re double the 25 percent duties that were first imposed in March. “In my judgment, the increased tariffs will more effectively counter foreign countries that continue to offload low-priced, excess steel and aluminum in the United States,” Trump said on Tuesday.
However, economists warn that such increases will raise prices for consumers and significantly lower U.S. economic output. According to a new Congressional Budget Office report published on Wednesday, U.S. tariff increases in place before May 13 are expected to reduce the federal deficit by $2.8 trillion, after adjusting for growth and investment.
Regarding tariffs on metals specifically, steel prices have climbed 16 percent since Trump took office in January, according to the U.S. Producer Price Index. The U.S. Commerce Department calculated that the cost of steel in the United States is around $984 per metric ton, which is much higher than steel in Europe (at $690) or in China (at $392).
Trump’s decision to double steel and aluminum duties will affect most U.S. trading partners, but the United Kingdom remains an exception. U.S. levies on British metals will remain at 25 percent, according to the White House, though that rate could go up starting on July 9 if Washington believes that London has not held up its end of the new trade deal that the two reached last month.
British Prime Minister Keir Starmer expressed confidence on Wednesday that the United Kingdom will become entirely exempt from the U.S. metals tariffs before the July 9 deadline. “We are the only country in the world that isn’t paying the 50 percent tax on steel, and that will be coming down,” Starmer told British lawmakers.
Read more in today’s World Brief: Trump Doubles Steel and Aluminum Tariffs to 50 Percent.
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