Trump escalates trade war: 50% steel and aluminium tariffs now in effect
Doubled tariffs hit Canada and Mexico significantly, but the UK is exempt due to a preliminary trade deal
The US tariff rate on most imported steel and aluminium doubled on Wednesday as President Donald Trump ratchets up a global trade war on the same day he expects trading partners to deliver their “best offer” in bids to avoid punishing import tax rates on other goods from taking effect in early July.
“We started at 25 and then after studying the data more, realised that it was a big help, but more help is needed. And so that is why the 50 is starting tomorrow,” White House economic adviser Kevin Hassett said in explaining the move at a steel industry conference in Washington on Tuesday. The increase came into effect at 12.01am (12.01pm Hong Kong time).
The increase applies to all trading partners except Britain, the only country so far that has struck a preliminary trade agreement with the US during a 90-day pause on a wider array of Trump tariffs.
The rate for steel and aluminium imports from the UK – which does not rank among the top exporters of either metal to the US – will remain at 25 per cent until at least July 9.