SteelTariffs

In a last-ditch effort to shield its industry, the UK is ramping up diplomatic pressure on U.S. President Donald Trump, urging his administration to enact a zero-tariff agreement on British steel exports—just days before the U.S. plans to implement a new 50% tariff on global steel and aluminum imports.

🔹 Reynolds Heads to Paris, Pushes for Immediate Action

UK Business Secretary Jonathan Reynolds is set to meet with Trump trade envoy Jamieson Greer in Paris during the OECD summit. His mission: to secure clear timelines for the Economic Prosperity Agreement, signed on May 8 by Trump and UK Prime Minister Keir Starmer.
The agreement promised to eliminate tariffs on British steel and aluminum, but after more than three weeks, nothing has been enacted. UK officials admit they still don’t know how severely the looming 50% tariff hike will impact the country’s £400 million annual exports to the U.S.

Trump’s Tariffs Loom as Agreements Stall
Although tariff and automotive agreements were signed, they’ve yet to come into force. UK officials warn it could take months to activate the deals—leaving exporters exposed as Trump’s new 50% tariff advances, doubling the current 25% rate.
Reynolds will use the Paris meeting to press for firm implementation dates, arguing it’s the only way Britain can prepare for the fallout. UK Steel Director Gareth Stace described the situation as chaotic:
“Uncertainty lingers. We don’t know if our second-largest export market will remain open for business—or if it’s being shut for good.”

It’s Not Just Steel: British Cars at Stake
The second part of the May 8 agreement aimed to reduce U.S. tariffs on British cars, with Trump agreeing to lower the duty from 27.5% to 10% for up to 100,000 vehicles annually. Starmer claims the deal could help protect jobs at major manufacturers like Jaguar Land Rover. Yet, like the steel deal, it remains in limbo.
The UK has already made concessions—allowing more U.S. imports of beef, ethanol, and industrial goods—but none of the agreed trade benefits have materialized for either side.

Legal Confusion and Trump’s Lawsuits Slow Progress
Adding to the turmoil, a U.S. international trade court recently ruled Trump’s broad “Liberation Day Tariff Scheme” as illegal. But the decision was immediately stayed by a federal appeals court, meaning Trump still has legal authority to move forward with his 50% steel tariff.
There’s another obstacle: Trump himself. Trade analysts say the president is embroiled in numerous legal battles, leaving him distracted from trade matters. As one UK official put it:
“The problem isn’t the paperwork—it’s the politics.”

Time Is Running Out
The UK government says it plans to submit the Economic Prosperity Agreement and supporting legislation to Parliament, but no date has been confirmed. Meanwhile, the new U.S. tariff takes effect this Wednesday, and without action from Trump’s team, British exporters will face severe consequences.

💬 Question for readers: Should the UK continue pressuring Washington—or wait until U.S. politics are more stable?

#SteelTariffs , #TRUMP , #Tariffs , #TradingCommunity , #worldnews

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Tensions in the steel trade between the United States and Mexico are starting to ease. According to sources familiar with the matter, the two countries are moving closer to an agreement that could reduce or eliminate the 50% tariffs on Mexican steel imports imposed under the Trump administration.

📦 Quotas on the Table? Steel Exports Might Be Freed – But Only in Part
One of the proposals being discussed involves a quota system, allowing Mexico to export a specific amount of steel to the U.S. duty-free or at a reduced rate. Once this limit is exceeded, the full 50% tariff would apply.
The exact level of this quota has not yet been finalized, and it’s also unclear whether the steel under quota would be entirely duty-free or just taxed at a lower rate. Details remain under negotiation.

🗣️ Ebrard: Trump’s Tariffs Are Unfair and Unsustainable
Mexican Economy Minister Marcelo Ebrard didn’t mince words, calling Trump’s tariffs unjust and economically damaging during a speech in Mexico City. He said Mexico will present strong arguments to the U.S. on why the tariffs should be rolled back or relaxed.
Ebrard traveled to Washington on June 6 to meet with U.S. officials and revealed that Mexico has a "Plan B" ready in case the talks fail — although he did not provide specifics.

🚛 Limited Duty-Free Imports Based on Historical Levels
According to ongoing discussions, U.S. companies would be able to import Mexican steel duty-free up to a certain limit, which would be based on historic trade volumes between the two countries. Any imports above this threshold would be taxed at the full rate.
In 2024, Mexico exported 3.52 million net tons of steel to the U.S. — a 16% drop compared to 2023 (4.18 million tons). This still made Mexico the third-largest steel supplier to the U.S., behind Canada (6.56 million tons) and Brazil (4.5 million tons).

❌ White House Silent, but Pressure Builds
While neither the White House nor the Department of Commerce, which oversees tariffs under “Section 232,” have commented publicly, industry leaders are pressuring officials to implement a clear quota system for Mexico. They say it would help avoid the kind of unexpected import surges seen in the past.

🌐 U.S. Aims to Block Third-Party Steel via Mexico
A major concern for U.S. officials is that steel from countries like China could be routed through Mexico to avoid U.S. tariffs. That’s why they’re pushing for safeguards that would prevent such transshipment or relabeling of foreign steel.

⚖️ Exemptions Never Came: What Happened in 2018?
When Trump introduced a 25% steel tariff in 2018, Mexico and Canada were granted special treatment — but no formal quota system was put in place. Brazil, by contrast, did receive quotas. This gap remains a sticking point in today’s negotiations.
In April 2024, Trump further escalated the policy by revoking all previous exceptions and exclusions, raising tariff rates even more across steel and aluminum products.

🔍 Ebrard: The U.S. Has a Trade Surplus – Why Punish Mexico?
Ebrard also pointed out that the U.S. runs a trade surplus with Mexico in steel and aluminum, questioning the logic of punitive tariffs. He argued that Mexico is not harming U.S. industry and remains a trusted trade partner.

🔚 What Comes Next?
While a final deal hasn’t been signed, optimism is growing. If the two nations agree on a fair quota, it could be a win-win scenario — the U.S. retains control over imports, and Mexico gains predictability for its exports.

#SteelTariffs , #TRUMP , #mexico , #usa , #TradingCommunity

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$TRUMP

On February 10, 2025, President Donald Trump announced a major policy shift, reinstating and expanding tariffs on steel and aluminum imports. The new measures impose a 25% duty on all steel and aluminum entering the U.S., eliminating prior exemptions granted to key trade partners. Trump’s administration positions this move as a catalyst for revitalizing American manufacturing, though it has ignited debates about potential inflationary effects and heightened global trade tensions.
**Details of the Tariff Policy**
President Trump formalized the tariffs through two proclamations, reinstating a 25% levy on steel imports and raising aluminum tariffs from 10% to 25%. Notably, exemptions for countries like Canada, Mexico, and Brazil—previously shielded from such measures—have been removed. These nations supply a significant portion of U.S. steel, and the elimination of their exemptions marks a considerable shift in trade dynamics. Trump justified the decision, stating, “America’s industries were under siege from both allies and adversaries. It’s time to bring our great manufacturing sector back home.” The administration argues that these tariffs will foster domestic production, reduce reliance on foreign metals, and create new jobs within U.S. borders.
**Economic Outlook and Inflation Concerns**
While the tariffs are intended to bolster U.S. steel and aluminum producers, economists caution about possible repercussions. Industries heavily dependent on these materials—such as automotive, construction, and consumer appliances—could face rising production costs. Analysts estimate that vehicle prices may increase by $1,000 to $1,500 due to higher steel costs. Additionally, the broader economic landscape might feel inflationary pressure, with forecasts suggesting the consumer price index (CPI) could climb to 2.7% in 2025, up from previous projections of 2.5%. The core personal consumption expenditures (PCE) index, another key inflation indicator, is also expected to rise.
**International Trade Ramifications**
The reintroduction of these tariffs has stirred concerns about escalating trade disputes. Key allies such as Canada and Mexico—both major steel suppliers to the U.S.—may respond with retaliatory tariffs on American products, potentially straining diplomatic relations and disrupting supply chains. Furthermore, while direct U.S. imports of Chinese steel remain minimal, the new tariffs aim to close loopholes through which Chinese steel enters the market via third-party countries. This approach risks further tensions with Beijing and could lead to retaliatory actions, complicating the global trade environment.
**Industry Reactions and Future Implications**
U.S. steel manufacturers have largely welcomed the tariffs, reflected in a surge in stock prices for companies like Cleveland-Cliffs and U.S. Steel. However, sectors reliant on affordable steel and aluminum imports—notably automotive and construction—express concerns over rising costs and potential job losses. Critics highlight that similar tariffs during Trump’s first term initially spurred domestic production but failed to yield sustained job growth. The COVID-19 pandemic further undermined these gains, and the industry has not fully recovered to pre-tariff production levels.
As inflation remains a critical issue for the U.S. economy, the Federal Reserve will closely monitor the tariffs' impact on price stability and economic growth. The effectiveness of this policy in delivering long-term job growth and industrial resurgence remains uncertain. In the coming months, both markets and policymakers will evaluate the broader implications of this significant shift in trade strategy.
Stay tuned for further updates on this evolving story! 😊😊
#EconomicNews #SteelTariffs #AluminumTariffs #InflationWatch #ManufacturingRevival