easures, global stock markets rose as traders with “tariff fatigue” appeared to shrug off Trump’s plans.
“Today I’m simplifying our tariffs on steel and aluminum,” Trump said in the Oval Office. “It’s 25 percent without exceptions or exemptions.”He also signaled that he would look at imposing additional tariffs on automobiles, pharmaceuticals and computer chips.
Canada and Mexico; which Trump has already threatened with tariffs, are the biggest steel importers to the United States, according to US trade data. Brazil and South Korea are also major steel providers.
“President Trump has made it clear that an important part of an America First Golden Age is steel production,” National Economic Council Director Kevin Hassett told CNBC.
The US leader said he was considering an exemption for Australia from the steel tariffs, confirming comments made by Australian Prime Minister Anthony Albanese.”We have a (trade) surplus to Australia, one of the few. And the reason is they buy a lot of airplanes. They are rather far away and need lots of airplanes,” he said.
Trump has also promised an announcement on Tuesday or Wednesday on broader “reciprocal tariffs” to match the levies other governments charge on US products. He imposed sweeping tariffs during his 2017-2021 presidency to protect US industries, which he believed faced unfair competition from Asian and European countries.
Canadian steelmakers warned of “massive” disruption, while the European Commission said it would “react to protect the interests of European businesses, workers and consumers from unjustified measures.”
French President Emmanuel Macron vowed in an interview aired Sunday to go head-to-head with Trump over his wider tariff threats against the European Union, though he said the United States should focus its efforts on China.
Chinese foreign ministry spokesman Guo Jiakun said Monday that “there is no winner in a trade war and tariff war.”
Trump also focused on steel during a visit by Japanese Prime Minister Shigeru Ishiba last week. The American leader said he had secured an agreement for Japan’s Nippon Steel to make a major investment in US Steel, instead of seeking to take over the troubled firm.
Trump, who has promised a “new golden age” for the United States, insists the impact of any tariffs would be borne by foreign exporters without being passed on to US consumers, despite most experts saying the contrary.
But he did acknowledge this month that Americans might initially feel economic “pain” from the levies.
