President Donald Trump plans to impose 25% tariffs on steel and aluminum imports on Monday as he works to overhaul the nation’s trade system.
The president plans to make announcements about a broad range of reciprocal tariffs on Tuesday or Wednesday.
“Very simple, they charge us, we charge them,” Trump said Sunday. Those tariffs will go into effect “almost immediately,” he said.
“Tariffs are going to help. Tariffs are going to make it very successful,” Trump said.
Trump said the reciprocal tariffs plan will apply to all trading partners, but some countries that already charge similar tariffs on American goods that the U.S. charges on their products may not see much change. Steel and aluminum tariffs will apply to every country exporting the metals to the U.S.
Trump postponed his most aggressive tariffs on imports from Canada and Mexico last week. Trump was on the verge of putting 25% duties on products from the two largest U.S. trading partners. He hit the pause button hours before the tariffs were expected to go into effect after reaching deals related to immigration and fentanyl smuggling with Mexico and Canada. Leaders of both countries promised to strengthen border security.
Some foreign steel makers are calling on the European Union to step in.
Gunnar Groebler, president of the German Steel Industry Association, said the U.S. tariffs will hurt Germany and the EU.
“The announcement by the US President that he will impose punitive tariffs on all steel imports hits the steel industry in Germany and the European Union in several ways – and at an inopportune time,” he said in a statment. “On the one hand, the USA is the most important sales market for the European steel industry. Around a million tons of mostly special steels are exported to the USA every year from Germany alone. Around 20% of total steel exports from the EU reach the US market.”
Groebler said the EU must act quickly.
“What is now needed quickly is a consistent adjustment of the protective measures, the so-called EU safeguards,” he said. “The tariffs on steel announced by the USA will lead to volumes being diverted to Europe, which will further increase the existing import pressure due to overcapacity from China. Secondly, we continue to call on the EU to continue discussions with the USA about a sectoral agreement.”
Trump touted tariffs throughout his campaign and during his inauguration said tariff revenue would make the U.S. “rich as hell.” He also said that tariff revenue would lower the tax burden on American taxpayers.
Most economists have panned Trump’s tariff plans. On Thursday, S&P Global, a credit-rating agency, reported the potential effects of Trump’s tariffs were “overwhelmingly negative.” S&P analysts said the tariffs could slow gross domestic product growth, boost unemployment and inflation. It noted that “the effects on the U.S. are smaller than for trading partners.” Gross Domestic Product, or GDP, is a measure of economic output. S&P noted the uncertainty around Trump’s tariff plans creates problems for businesses and U.S. families.
