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President Donald Trump has doubled tariffs on steel and aluminum imports to 50 percent, a significant increase from the previous 25 percent rate. The tariff hike, which took effect just after midnight on Wednesday (June 4), aims to protect U.S. industries by countering foreign countries that offload low-priced metals in the American market. During a visit to a U.S. Steel plant in Pennsylvania, President Trump stated that the increased tariffs would "further secure the steel industry in the U.S." and prevent foreign metals from undermining national security.
The tariff hike has sparked criticism from U.S. trading partners. Canada, the largest exporter of steel and aluminum to the U.S., called the move "unlawful and unjustified." Mexico also plans to seek an exemption from the tariff increase. Despite the backlash, the American Iron and Steel Institute supports the move, believing it will prevent surges in imports that could harm U.S. steel producers.
However, the higher tariffs are expected to impact various industries that rely on steel and aluminum. The increased costs could affect automakers, plane manufacturers, and construction projects.
President Trump cited Section 232 of the Trade Expansion Act of 1962 to justify the tariff increase, emphasizing national security concerns. While some factory owners support the tariffs, believing they will boost American manufacturing, others worry about the economic impact and unpredictability of the trade policies. The tariffs are part of a broader trade agenda that has raised concerns about potential economic slowdown and challenges for businesses planning for the future.