During his run for the presidency, Trump promised we would be using more American steel and aluminum to build things, putting people back to work in both industries.
After Trump won the election, many builders took a pre-emptive move and imported mass amounts of cheaper steel and aluminum before his promised changes went into effect.
Today, Trump finally announced the promised tariffs he will levy against imported steel and aluminum that will go into effect next week: 10 percent for aluminum and 25 percent for steel.
The hope is this will level the playing field for American steel and aluminum manufacturers and put their product on par with imported aluminum and steel.
Basically, the President is trying to remove the advantage foreign producers have in selling their products to builders in our country.
Trump stated, “So steel and aluminum will see a lot of good things happen. We’re going to have new jobs popping up.”
He continued, “You will have protection for the first time in a long while and you are going to regrow your industries. That’s all I’m asking. You have to regrow your industries.”
While the steel and aluminum industries celebrated Trump’s move, the stock market did not take it so kindly.
The recent rebound suffered a setback when the S&P Index fell by more than one percent, with investors fearing repercussions by trade partners.
The Institute for Supply Management called Trump’s tariffs a “big mistake,” and the European Union has already announced it would now impose similar levies if Trump does indeed push through these tariffs.
This will definitely be part of Trump’s legacy, as he promised he would turn the United States’ bad trade deals around and make them better for American business.
While on the surface that may seem like a good deal for domestic steel and aluminum, it may take a while before we see how far down the reverberations are felt.
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