The Trump administration expanded its characteristic tariffs on steel and aluminum to cover certain imports of nails, staples, electrical cables and certain finished parts for cars and tractors, among other products.
The decision comes almost two years after the administration applied tariffs on foreign crude steel and aluminum imports that President Donald Trump had pointed out as a threat to the viability of national industries and, therefore, threatened the national security of U.S.RELATED
Some imports of products derived from aluminum would be subject to an additional tariff of 10%, while some products derived from steel would receive a tariff of 25%, he said.
Argentina, Australia, Canada and Mexico were exempt from additional tariffs on aluminum. As for steel tariffs, exemptions were allowed for Brazil, Argentina, Canada, Australia, Mexico and South Korea.
What does the reimposition of US tariffs mean to Argentina? to steel and aluminum
While aluminum and steel imports have declined since the Trump administration imposed levies, some derivative products "have increased significantly since the imposition of tariffs and fees," according to Trump's statement.
In the document, Trump said he agreed with Commerce Secretary Wilbur Ross that aluminum and steel items were being imported to the US. "In quantities and under circumstances that threaten to undermine US national security."
Following the imposition of tariffs in 2018, U.S. steelmakers, including Nucor Corp., U.S. Steel Corp. and Steel Dynamics Inc. enjoyed higher profits, which provided them with a catalyst to restart steel capacity or build new plants in the country.
While steel prices initially increased, they have fallen by approximately 30% since the president's announcement in March 2018. Steel companies, as well as US aluminum producers, including Alcoa Corp. and Century Aluminum Co., have seen the price drop. its actions due to lower demand, coupled with a fall in manufacturing activity and the increase in the domestic supply to come.
After the imposition of tariffs in 2018, US steelmakers enjoyed higher profits
National security concerns regarding trade are contemplated in Section 232 of the Commercial Expansion Act. The original decision 232 of 2018 covered the manufacture of raw metal and did not include finished parts, which became complaints among some national manufacturers of spare parts for heavy machinery, cars, airplanes and other products, which feared that importers could avoid Tariffs simply by importing value-added products.
Since the beginning of his administration, Trump has used tariffs – and the threat of imposing them – to influence politics.
Earlier this week, at the World Economic Forum in Davos, Switzerland, the president warned European leaders of new sanctions if they were unwilling to reach a trade agreement before the US elections in November.
They are frankly more difficult than China to do business, Trump said about the EU
Trump departed from the more conciliatory tone he had manifested earlier this week, once again highlighting the option of applying tariffs on imports of European cars and parts and claiming that he first focused on his trade war with China because a European Union Uneven was harder to handle.
"They have trade barriers where you can't negotiate, they have tariffs everywhere, they make it impossible," Trump said Wednesday. "They are frankly more difficult than China to do business."
Brazil and Argentina have been presiding over a massive devaluation of their currencies. which is not good for our farmers. Therefore, effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the U.S. from those countries. The Federal ….
– Donald J. Trump (@realDonaldTrump) December 2, 2019
Last month, Trump restored steel and aluminum tariffs from Argentina and Brazil, nations he criticized for lowering their currencies to the detriment of American farmers, and again asked the Federal Reserve to make monetary policy more flexible.
By linking his trade agenda with his criticisms of the Fed, Trump said in a tweet that both South American countries "have imposed a considerable devaluation of their currencies, which is not good for our farmers."