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Donald Trump’s 25% tariff on 25% steel and aluminum imports came into effect Wednesday as he continued to pursue his protectionist trade agenda despite growing concerns about the risk of a recession within the country.
The president announced last month that he would be in charge of duties, tearing several agreements between his predecessor, Joe Biden, and his US trading partners, allowing certain amounts of steel and aluminum to enter the state’s tax exemption.
US officials under Trump have framed the move in response to “foreign athletes” who say they are responsible for the “surge in exports” to the United States, which undermines domestic producers.
Trump will also expand metal duties to apply to a wide range of products including steel and aluminum, including tennis rackets, exercise bikes, furniture and air conditioning units.
The White House has confirmed that customs duties on derivative products will also apply from Wednesday.
The move is part of the broader protectionist measures Trump has introduced since he took office in January. His efforts rattle investors, sparking fears about the US economic downturn and exacerbated relations with some of America’s closest allies.
Australian Prime Minister Anthony Albanese on Wednesday said tariffs were “completely unjust” and “opposed to the spirit” of the nation’s “enduring friendship.”
Australia is exempt from similar tariffs implemented during Trump’s first term, with country steel producers supplying the US defense and manufacturing sector.
“This is not a friendly act,” Albanese said.
On Tuesday, Trump announced that he would double the tariffs applied to steel and aluminum imports from Canada, marking the escalation of a trade war with one of the top three US trading partners before turning the course back later that day.
Ontario Canada announced on Monday it announced an additional 25% charge for electricity exported to the US.
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According to an analysis by Simon Eventt and Johannes Fritz of the ST Gallen Fund for Prosperity through Trade, 2024 represents $151 billion in imports.
Ted Murphy, a partner at law firm Sidley Austin, said Trump’s drastic new metal tariffs represent a “major change” from his approach when he introduced similar taxes in 2018 and allowed some products to be excluded.
“Product exclusions were reviewed through a US government process to identify products that were not available in the US,” Austin said. “So taking that out means that a lot of people can’t source these products domestically and they have to pay customs duties.”
Additional Reports by Sydney’s Nick Fildes
