Washington:
US President Donald Trump has shocked the whole world by making another big announcement about his trade policy, although he had already indicated it. Trump is going to impose 25% tariffs on steel and aluminum imports on Steel, Aluminum Imports from today. This will be on the top of additional metal duties. It will be known by the end of this week.
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What is the purpose of Trump behind the tariff?
Trump says that his aim behind this is to protect American industries and improve trade balance. Trump made this announcement to the media in Air Force One at New Orleans on Sunday. Trump said that he would impose tariffs, it will be implemented with immediate effect.
However, President Trump did not make it clear which countries will have focus on which countries regarding mutual tariffs. However, he made it clear that America will also keep the tariff rate equal to other countries and it will be applicable to all countries. He said on his mutual tariff plan that if he takes the tariff from us, we will also take them.
How much tariff did America first put on?
Trump had imposed 25 percent tariff on steel and 10 percent on aluminum in his first term by 2016-2020. But later, many trade partaners including Canada, Mexico and Brazil had given duty free quota. Former President Joe Biden extended these quota to Britain, Japan and European Union. In recent years, American steel mill capacity utilization has declined.
Canada, more trouble for Mexico?
According to official data, Canada, Brazil and Mexico are the largest sources of American Steel imports, followed by South Korea and Vietnam. Canada is the largest supplier of primary aluminum metal to America with large margins. In the first 11 months of 2024, 79 percent of the total imports are 79 percent. Mexico is the main supplier of aluminum scrap and aluminum alloy.
What is Trump saying on the tariff?
Trump said that he will give detailed information on the mutual tariff scheme by holding a press conference on Tuesday or Wednesday. Trump told that for the first time he told on Friday that he is planning a mutual tariff. As other countries are doing it, they are also going to do it.
Trump has been saying for a long time that 10 percent tariff of the European Union on Auto import is much higher than the US car rate of 2.5 percent. He has been repeatedly saying that Europe “will not take our cars” but every year millions are sent to the west of the Atlantic.