President Donald Trump is planning to set new tariffs on aluminum and steel.
The following are a few things to know about these new Trump tariffs.
- They will result in a 25% tariff on steel.
- Aluminum will be hit with a 10% tariff.
- The goal of the effort is to protect workers in the steel and aluminum industries.
- However, there are concerns that the tariffs will increase costs for other goods, such as cars, beer and houses.
- The President hopes that the Trump tariffs will help protect the steel industry, which as yet to bounce back to pre-recession status.
- Arguments against the tariffs claim that the metal industries only employee about 415,000 people.
- This isn’t much in comparison to those downstream of the industry, which employ up to 16 times more workers.
- It’s very possible that the high tariffs could result in a trade war between the U.S. and other countries.
- The European Union has already hinted at such by saying it will introduce safeguards should the Trump tariffs go through.
- It is also planning to file a complaint with the World Trade Organization over the matter.
- The European Commission also says it will talk about countermeasures to the tariffs on Wednesday.
- President Donald Trump doesn’t appear to be worried about a trade war, though, saying it will be “easy to win.”
- It’s still unknown if there will be exemptions to the Trump tariffs for allies of the U.S.
As of this writing, William White did not hold a position in any of the aforementioned securities.