UK Steel called the move a ‘body blow’ to British exports|Antoniorosset|CC BY-SA 4.0
President Donald Trump announced he would double tariffs on steel and aluminum imports from 25% to 50%, starting June 4, escalating his trade war strategy.
The announcement came Friday during a rally at a US Steel plant in West Mifflin, Pennsylvania. He said the move would “secure” the US steel industry and block foreign competitors.
He tied the hike to a $15 billion investment deal between Nippon Steel and US Steel, calling it a win for American jobs.
The global fallout was swift. Canada, the top steel exporter to the US and the EU, criticized the decision, warning it will harm supply chains and raise prices. The European Commission said it may impose countermeasures by July.
UK Steel called the move a “body blow” to British exports. The country’s new Prime Minister, Kier Starmer, recently secured a deal with Trump, according to which steel and aluminum were reportedly exempt from tariffs.
Trump wants to increase the production of the two metals in the country. But, according to experts, as imports decrease, prices for steel and aluminum are expected to rise. In-house production would also lead to higher costs, ultimately resulting in higher prices for consumers.
With tensions escalating, the international community is bracing for more disruptions in global trade.
Despite this, Trump remains committed to using tariffs to protect American industry.