US Imposes 25% Tariff on Steel and Aluminum Imports, Citing National Security Concerns

Washington D.C. February 10 (Xinhua) - The White House announced on social media platform X that President Trump signed a document on Monday, imposing a 25% tariff on all US imports of steel and aluminum, effective immediately.

This move marks a significant escalation in the Trump administration's trade policies, as it also cancels certain exemptions and waivers for some trading partners. The new tariffs will apply to all imports of steel and aluminum, regardless of country of origin.

Trump claimed that this measure would help the US steel and aluminum industries, as well as job seekers who have lost their employment due to foreign competition. He also emphasized that there would be no exceptions to these tariffs, stating that the US needs to 'get even' with other countries.

In addition, Trump announced plans to impose so-called 'reciprocal tariffs' on products such as semiconductors, automobiles, and pharmaceuticals, citing the need for the US to match its tariffs to those of other countries.

According to Gary Hufbauer, a senior research fellow at the Peterson Institute for International Economics and former US Treasury official, the new tariffs will likely lead to significantly higher prices for steel and aluminum in the United States compared to global market prices. This could harm downstream industries that rely heavily on these materials, including automakers, electrical equipment manufacturers, and aircraft producers.

Hufbauer warned that while some US steel and aluminum companies may benefit from these tariffs, many more American businesses will be harmed by the increased costs and uncertainty. He predicted that this move would lead to 'bad outcomes' for the US manufacturing sector.

Dean Baker, a senior economist at the Center for Economic and Policy Research, echoed Hufbauer's concerns, stating that in the short term, US companies will face higher costs when purchasing steel and aluminum, particularly automobile manufacturers. In the long term, manufacturers may be hesitant to invest due to uncertainty over whether these tariffs will remain in place.

This is not the first time Trump has imposed trade barriers. During his previous term as president, he imposed 25% and 10% tariffs on imported steel and aluminum, respectively, citing national security concerns.

A study by the Federal Reserve Bank of New York found that since 2018, US government's unilateral imposition of trade barriers, including steel and aluminum tariffs, has led to job losses in the manufacturing sector. Hufbauer predicts that this latest move will likely have similar consequences, but even worse outcomes for the US economy.