- Trump plans to impose a 25% rate on steel and aluminum on Monday.
- Canada, Mexico and Brazil are the main American steel suppliers; Canada, water and Mexico lead aluminum.
- Prices could cause higher consumer prices on cars, construction of homes and household items.
President Donald Trump doubles his pricing program with a possible 25% levy from all steel and aluminum imports – a decision that could probably make buildings and the assembly of cars more expensive.
“All steel entering the United States will have a 25%rate,” Trump told journalists On Sunday, the addition of the coverage rate would also apply to aluminum. He said he would officially announce the prices on Monday but had not yet clarified when the measures would be imposed.
Data from the census office showed that Canada, Mexico and Brazil were the main suppliers of steel and iron imports in the United States in 2024 in the value of a dollar. Iron can be used to produce steel.
In 2024, Canada, the United Arab Emirates and Mexico were the main countries of American aluminum and bauxite – a material used to create aluminum – Imports by Dollar value.
One of Trump’s main objectives at the start of his second term was to limit foreign trade to strengthen national industries. Many economists have warned that the weight of prices could fall to American consumers.
With a possible price on steel and aluminum on the horizon, the Americans could expect various consumer goods such as pipes and cooking utensils become more expensive due to the lower offer, higher demand and higher import costs. Travel and construction industries are also likely to be affected.
Aluminum is mainly used to make cars, planes, kitchen appliances, cans and electrical transmission lines, according to the US Geological Survey. Steel is also used in automotive production, as well as in the construction of bridges, buildings and houses.
The prices of the metals offered occur a few days after a set of new 10% prices was implemented on China, which quickly retaliated with a price of 15% on coal and liquefied natural gas and a price to 10% on crude oil, agricultural machines and certain vehicles. In addition, the White House delayed a price of 25% in Canada and Mexico after Trump concluded an agreement with nations leaders on border protection measures.
Trump’s plan for metal rates also follows big news in the steel industry. Nippon Steel in Japan announced on February 7. That it will lower its acquisition offer from almost $ 15 billion for US Steel, ending a one -year battle on American steel production. Japanese Steel said that he “would invest in” strongly “in US Steel.
However, Trump’s new concentration on metal prices should not surprise. During his first mandate, the president imposed a rate of 25% on steel and a tariff of 10% on aluminum. He then granted exemptions in franchise on rights to the best business partners such as Canada, Mexico and Brazil. It is not clear if it will do the same this time.
The Trump administration did not immediately respond to a request for comments.
businessinsider
