(LOOTPRESS) – President Donald Trump signed an executive order Monday imposing a 25% tariff on all steel and aluminum importsto the United States, a move he claims will strengthen American industry and reduce the trade deficit.
“This is a big deal,” Trump declared while signing the order in the Oval Office. “The beginning of making America rich again.”
The tariffs come just a week after Trump pledged to suspend duties on Canada and Mexico, raising questions about his broader trade strategy. The move also mirrors tariffs imposed during his first term, which were justified on national security grounds. However, this time, Trump’s reasoning is less clear, citing job creation and reducing the U.S. trade deficit as primary motivations.
Economic and Political Implications
Over the weekend, Trump vowed to take action against nations he believes are “taking advantage” of U.S. businesses. Analysts speculate that the tariffs could be a negotiating tactic aimed at securing better trade deals rather than a long-term economic policy.
A 2022 Congressional Research Service report found that most steel used by American manufacturers is already domestically produced. However, the U.S. is significantly more dependent on aluminum imports, raising concerns among businesses and trade groups.
On Monday, the United Steelworkers Union, which typically supports trade protections, criticized the tariffs, warning they could backfire if implemented too broadly.
“We must distinguish between trusted trade partners, like Canada, and those who are seeking to undercut our industries as they work to dominate the global market,” the union said in a statement.
Canada is the largest supplier of steel to the U.S., followed by Brazil, Mexico, South Korea, and Vietnam.
Potential for Retaliatory Tariffs
Trump has hinted at reciprocal tariffs, meaning the U.S. could impose similar duties on countries that tax American exports. Analysts at Capital Economics noted that Trump may be using the tariff threat as a bargaining tool, but warned that his “act first, negotiate later” approach could drive inflation higher.
“Given Trump’s tendency to act before negotiating, it’s likely that these tariffs will increase inflation this year and influence the Federal Reserve’s stance on interest rates,” the firm wrote in a note to clients.
As global markets react, the impact of Trump’s latest tariff move remains uncertain, with trade partners weighing potential retaliatory measures.
