Trump prepares tariffs on steel and aluminum

WASHINGTON — President Trump suggested Thursday he may place tariffs on steel and aluminum imports, a move that could trigger retaliation from trade partners who may target American products.

“Our Steel and Aluminum industries (and many others) have been decimated by decades of unfair trade and bad policy with countries from around the world,” the president tweeted. “We must not let our country, companies and workers be taken advantage of any longer. We want free, fair and SMART TRADE!”

Our Steel and Aluminum industries (and many others) have been decimated by decades of unfair trade and bad policy with countries from around the world. We must not let our country, companies and workers be taken advantage of any longer. We want free, fair and SMART TRADE!

— Donald J. Trump (@realDonaldTrump) March 1, 2018

More: Citing national security, Trump says he’s nearing decision on steel and aluminum tariffs

The president has been reportedly been talking about around 25% percent tariffs on steel and 10% on aluminum, officials said.

While China is the prime target, other countries are likely to be affected.

“I want to keep prices down, but I also want to make sure that we have a steel industry and an aluminum industry, and we do need that for national defense,” Trump said. “If we ever have a conflict, we don’t want to be buying the steel from a country that we’re fighting, because somehow that doesn’t work very well.”

In mid-February, the Commerce Department gave Trump options that included tariffs of at least 24% on steel and  7.7% on aluminum, with higher penalties on certain countries, including China.

Trump based much of his 2016 presidential campaign on claims that trade policies of China and other countries have undercut the United States, particularly its manufacturing sector. That argument won support in industrial areas of Pennsylvania and Michigan, two states that  helped Trump win the election over Democrat Hillary Clinton.

Critics said Trump tariffs would invite retaliation from other countries, who may use tariffs on their own to target American products ranging from Kentucky bourbon to Wisconsin cheese.

The result, they said, would be higher prices for U.S. consumers.

Noting that Trump has often called for trade that is “free, fair, and reciprocal,” a White House statement on tariffs said the Commerce Department “determined that the quantities of imported steel and aluminum represent potential threats to our national security.”

The president “is considering several proposals — including quotas and tariffs — to adjust steel and aluminum import levels and keep our Nation secure,” the White House said.

 

 

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