Washington: U.S. President Donald Trump signed a proclamation to double tariffs on imports of steel and aluminum to 50 percent this week, asserting that the increased tariffs will more effectively counter foreign countries accused of offloading "low-priced, excess" metals into the U.S. market.
According to Yonhap News Agency, the new tariff rate is scheduled to take effect at 12:01 a.m. on Wednesday, amidst concerns that the new duties might lead to higher prices and slower economic growth. Trump has been employing tariffs to reduce America's trade deficits and bolster domestic manufacturing.
The proclamation highlighted that while previously imposed steel and aluminum tariffs have provided critical price support in the U.S. market, they have not yet enabled these industries to achieve the necessary rates of capacity production utilization required for their sustained health and projected national defense needs.
Trump stated that increasing the previously imposed tariffs would offer greater support to these industries and mitigate the national security threat posed by imports of steel and aluminum articles and their derivative articles.
Citing the May 8 trade deal with Britain, known as the Economic Prosperity Deal (EPD), Trump mentioned that it is "necessary and appropriate" to provide "different treatment" to London. The rate for Britain will remain at 25 percent, but Commerce Secretary Howard Lutnick may adjust the rate and construct import quotas for steel and aluminum consistent with the terms of the EPD. The proclamation noted that the secretary might increase the applicable rates of duty to 50 percent if it is determined that the United Kingdom has not complied with relevant aspects of the EPD.