Egypt Daily News – The United States on Wednesday raised tariffs on imported steel and aluminum products from 25% to 50%, implementing a decision announced by President Donald Trump. The steel and aluminum sector was the first to be targeted by the tariffs imposed by Donald Trump, with additional tariffs of 25% applied starting March 12 to encourage investment in the United States.
The 50% U.S. tariffs on imported steel and aluminum products came into effect on Wednesday, in implementation of President Trump’s decision.
The decree to double the tariffs was published on Tuesday and came into effect at 12:01 a.m. local time (04:01 GMT).
Protecting “our industries…”
When announcing the decision on Friday, the U.S. President said the new additional tariffs would protect “our steel and aluminum industries, which will be stronger than ever.” He added, “We want to ensure that (imports) do not threaten national security.”
The text of the decree stated: “Although the tariffs imposed so far have provided essential support for prices in the U.S. market, they have not enabled these industries to increase and sustain the utilization rate of their production capacities at a sufficient level to ensure their continuity, nor to meet national defense requirements.”
UK exemption
The United Kingdom was exempted from this new increase, maintaining its tariff rate at 25%, to allow time for London and Washington to complete negotiations and implement a trade agreement announced last month, which is expected to exempt the British steel sector from tariffs.
For its part, the British government expressed its “satisfaction,” affirming that it “will continue to work” with the U.S. administration to ensure the agreement enters into force.
The “UK Steel” association, which represents the steel industry in Britain, welcomed the suspension of increased tariffs on its exports to the United States but called on London and Washington to “quickly turn the May agreement into reality.”
The steel and aluminum sector was the first to be targeted by the tariffs imposed by Donald Trump, with additional tariffs of 25% applied from March 12 to encourage investment in the United States.
These tariffs were also applied to the automotive industry before soon expanding to include pharmaceuticals and semiconductors, the only sectors not affected by a recent court ruling that targeted non-discriminatory tariffs.
“Time is running out”
The tariffs were raised at a time when White House Trade Representative Jamison Greer was scheduled to meet with European Trade Commissioner Maroš Šefčovič on the sidelines of the OECD (Organisation for Economic Co-operation and Development) meeting, which concluded Wednesday.
The discussions have become tense after Trump threatened the European Union with a 50% tariff on European products exported to the United States, accusing the bloc of not negotiating in good faith.
Tensions are also rising as the 90-day period agreed to suspend reciprocal U.S. tariffs nears its end on July 9.
White House spokeswoman Karoline Leavitt confirmed Tuesday that “the U.S. Trade Representative has sent a letter to all our trade partners reminding them of the approaching deadline.”
Europe ready to respond…
However, Europe has said it is ready to respond if the increased tariffs specifically target it.
Also, on the sidelines of the OECD meeting, Greer announced he would meet with his Vietnamese and Malaysian counterparts.
Trade representatives from the G7 countries (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States) are set to meet Wednesday morning at the OECD headquarters in Canada, less than two weeks before the summit of heads of state and government scheduled for June 15–17 in the Canadian Rockies.
German Economy Minister Katrin Reiche said Tuesday on the sidelines of the OECD meeting, “We must reach negotiated solutions as soon as possible because time is running out.”
French Trade Minister Laurent Saint-Martin also said on the sidelines of the meeting, “We must remain calm and make it clear that implementing these tariffs is in no one’s interest, starting with the U.S. economy.”
The OECD expects U.S. economic growth to slow significantly this year due to Trump’s tariff war, reaching 1.6% compared to 2.4% before the Republican president took office.
Trump: “Hard to reach an agreement” with Xi Jinping
The atmosphere of uncertainty may continue to affect the global economy, as Trump last week accused Beijing of violating an agreement aimed at de-escalating tariff tensions, signed by the world’s two largest economies in mid-May in Geneva, Switzerland, a move that risks reigniting the trade war.
The White House confirmed Tuesday that Trump hopes to hold a call with Chinese President Xi Jinping “possibly this week.” However, on Wednesday, Trump wrote on his social network “Truth Social” that he “respects” Xi Jinping but finds it “very difficult to reach an agreement” with him.
It is worth noting that Canada, the largest supplier of steel and aluminum to the United States, considered even before the tariff increase to 50%, that these tariffs were “illegal and unjustified.”
Meanwhile, Mexican Economy Minister Marcelo Ebrard said his country would request an exemption from the tariffs on Friday, calling the measures “ridiculous,” noting that 80% of Mexico’s exports go to the United States.
