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.
You can follow these links to learn more about the Trump tariffs.
As of this writing, William White did not hold a position in any of the aforementioned securities.
