The 50% of Donald Trump steel and aluminum rates take effect | Commercial and economic news
Mexico claims that prices have “no sense” because Canada is looking for negotiations to withdraw the ongoing direct debits.
In a decision that has rekindled trade tensions with key allies, US President Donald Trump has doubled the prices on steel and aluminum imports.
The new prices, which entered into force early Wednesday, pass the tasks from 25% to 50%. Trump says that the measure is designed to strengthen the American metal sector in difficulty.
“We started at 25 and then, after studying the data, we realized that it was a great help, but more help is necessary. And that’s why the 50 [percent tariff] Starts tomorrow, ”said the White House economic advisor Kevin Hassett, during an event in the steel industry in Washington on Tuesday.
The decree applies to all business partners, with the exception of the United Kingdom, which concluded a provisional trade agreement with Washington during a 90-day break on broader rates.
British exports will continue to cope with a rate of 25% until at least July 9.
Allies are looking for exemptions
The hike should weigh heavily on Canada and Mexico, two of the economic allies closest to the United States and among the largest suppliers of steel. Census office data shows that Canada alone exports more aluminum to the United States than the rest of the first 10 combined countries. Almost half of American aluminum consumption is imported.
The office of the Prime Minister of Canada, Mark Carney, confirmed that “intensive and live negotiations” were underway to withdraw the prices.
The Mexican Minister of the Economy, Marcelo Ebrard, criticized the decision as irrational, noting the imbalance in steel trade between the two nations.
“This makes no sense for the United States to take a price on a product in which you have a surplus,” he said, adding that Mexico would ask for an exemption.
The European Union criticized the decision, saying that it “regrets strongly” the decision and warned that it could take reprisal measures, accusing Washington of undergoing negotiated regulation attempts.
The OECD chief economist Alvaro Pereira told the AFP news agency that prices had already alleviated world trade, investment and consumption, and that the United States will carry the weight of the benefits.
While several Trump’s pricing measures face a legal examination, they remain in effect during the appeal process.
