Trump Imposes More Tariffs—This Time on Steel and Aluminum

President Donald Trump signed executive orders Monday imposing 25% tariffs on steel and aluminum imports, which could potentially affect a slew of trading partners.

The tariffs will reportedly go into effect March 4 and apply to the roughly 25 million tons of steel that the country imports each year.

This move comes just a week after the White House delayed broad tariffs on Canada and Mexico. Those countries, along with Brazil and South Korea, send the most steel to the U.S.

It’s the latest development in the Trump administration’s campaign for trade policy changes. Last Tuesday, the White House levied a broad 10% tariff on imports from China.

What’s Next In The Tariff Saga

Trump also said “reciprocal tariffs” on any country that taxes goods from the U.S. will be enacted later this week. That echoes comments made by the U.S. trade representative nominee during his confirmation hearing late last week.

Economists and analysts also expect that, based on the president’s past comments, tariffs on automobiles could be levied soon. Those tariffs could be targeted to one country or broad, like the steel tariffs.

The White House wants to raise more revenue for the country and close the trade deficits, which it says will generate more money and business activity in the U.S. Most economists say broad tariffs will cost households more money and could endanger trade-related jobs, which would cause the Federal Reserve to keep its influential federal funds rate higher for longer.

On Monday, Deutsche Bank calculated that if the delayed Canada and Mexico tariffs go into effect and Trump enacts the reciprocal tariffs, those, along with the Chinese and steel tariffs, could push inflation above 3.5%. That measure is currently 2.8%.