U.S. Escalates Steel and Aluminum Tariff War

The U.S. intensified its global trade tussle by doubling tariffs on imported steel and aluminum. This new rate impacts key partners like Canada and Mexico, who are pushing back. As negotiations continue, the U.S. awaits proposals to avoid further hefty tariffs planned for July.

The United States has significantly ramped up its trade actions, doubling tariffs on most imported steel and aluminum, in a further escalation of the global trade war spearheaded by President Donald Trump. The new rates, taking effect immediately, increase from 25% to 50%, as the administration presses for revised trade agreements.

White House economic adviser Kevin Hassett justified the tariff increase, indicating it stemmed from a thorough data review revealing greater import restrictions were necessary. Notably, the tariffs exclude the UK, currently negotiating its trade terms with the U.S., keeping their rates steady at 25% for now.

The increased tariffs heavily target Canada and Mexico, key importers of U.S. steel and aluminum. While negotiations intensify, with Canada and Mexico calling the tariffs unfair, the market reacts with rising prices, especially in the aluminum sector. Meanwhile, other U.S. trading partners have been urged to submit 'best offer' proposals to avoid an impending July tariff hike.

(With inputs from agencies.)