Stocks pared gains in afternoon trading after Leavitt’s remarks at a regular news briefing, with makers of heavy electrical equipment and autos sinking on the news.
Also Read: US growth likely to slow to 1.6% this year, hobbled by Trump’s trade wars, OECD saysThe president’s ability to unilaterally impose tariffs stands on shakier legal ground after a federal court knocked down duties he announced under an emergency law. His levies on metals were not subject to that ruling, however.
Trump announced the decision during a speech at a United States Steel Corp. plant in Pennsylvania on Friday, where he endorsed the sale of the company to Japan’s Nippon Steel Corp. while pledging that it would remain under some form of American control.
“That means that nobody’s going to be able to steal your industry,” he told steelworkers Friday, in announcing the higher tariff. “It’s at 25%, they can sort of get over that fence; at 50%, they can no longer get over the fence.” He later announced in a social media post that the aluminium tariff would also rise to the same level.
Also Read: Trump appears to undercut US proposal to Iran, declaring he won’t allow any uranium enrichment
Trump’s administration is locked in a legal battle over the bulk of its tariffs, imposed under the International Emergency Economic Powers Act, or IEEPA. The steel and aluminium tariffs are unaffected by that fight because they were imposed using a different authority.
