This announcement is likely to cause unrest again in the international economy: at the end of a week in which dishes dealt with the tariffs of US President Trump, the Republican follows.
US President Donald Trump has announced a doubling of the applicable tariffs to steel imports in the USA. In a speech in front of workers of a steel business in the state of Pennsylvania, Trump said that he wanted to increase the tariff from the current 25 percent to 50 percent of the value of the goods. The higher taxes should come into force on June 4, the White House said.
The additional fees for introducing the US steel industry would strengthen, said the Republican. “Nobody will get around it.” Customs are his “absolute favorite word,” he said to the workers. The work in Pennsylvania would no longer exist if it had not already increased the tariffs for steel imports during his first term.
Trump explained a little later on his Truth platform, and the tariffs on aluminum should also be doubled to 50 percent. It was not immediately clear whether the now increased tariffs should also be exceptions – for example for Canada and Mexico, with which the United States forms a North American free trade zone. There were no exceptions for the original tariffs of 25 percent from February.
Trump’s tariffs employ courts
Various processes in which no final decisions have yet been made are running to the legality of many of the tariffs announced by Trump. A Court of Appeal had recently supported Trump’s customs policy with his decision. The US President has already made it clear that he wants to bring the dispute over the tariffs to the Supreme Court if necessary, the Supreme Court – conservative judges have a majority there.
It is about the import taxes that refer to an emergency to reduce the US trade deficit. These are most of the tariffs enacted by Trump’s government – including those that he had announced in early April.
The tariffs on the import of steel, aluminum and cars are not affected by this legal dispute, since they are regulated by their own law, which is formally justified with national security. The import of steel products into the USA should become even more difficult with the higher tariffs.
Negotiations about Trade agreement run
Trump has already announced, threatened or already implemented numerous other tariffs. In addition to a new tax of ten percent of the goods value to almost all imports, he has also announced specific, higher tariffs on imports of many countries. Large trading partners such as China and the European Union are also affected. His trade policy has led to faults, especially at the stock markets.
Many of Trump’s trading partners, including the European Union, are already negotiating with the United States to avoid tariffs through new trade agreements. In the case of the EU, Trump recently suspended additional tariffs of 50 percent of the imports of goods by imports until the beginning of July in order to leave more time for negotiations.
USA are important steel buyers for the EU
According to the German Industry Association of Stahl, the United States is the most important sales market for the European steel industry. Around four million tons were exported to the USA from the entire EU in 2023. From Germany alone, it is around one million tons every year, mostly special steel. Germany is therefore the largest steel producer in the EU.
The USA imports aluminum primarily from Canada, the United Arab Emirates, China and South Korea. Germany was only 16 of the most important countries of origin in 2024 – with a relatively small amount.
Trump irritates with statements about US Steel
Trump also praised the cooperation between US Steel and the Japanese steel company Nippon Steel. The takeover of the US company by the Japanese has been in the room for months, but was rejected by the unions at US Steel. In the election campaign, the President had pleaded for the remaining of US Steel in US ownership. The takeover was blocked by Trump’s predecessor Joe Biden.
On Monday, Trump announced that there was an agreement between Us Steel and Nippon Steel without naming details. Before the steel workers in Pennsylvania, he now confirmed that Us Steel would continue to “control the United States” that there will be no layoffs or outsourcing of jobs.
The steel union, etc., criticized Trump’s unclear announcement: Nothing to say that Nippon deviations from its previous position. So far, the Japanese group has always insisted that it would only invest in US Steel if he could take over the company.
