Trump doubles the duties on steel and aluminum from 4 June: « So we defend American workers »

In a speech held at the Irvin Works of Us Steel, the president Donald Trump has announced The doubling of rates on imports of steel and aluminumbringing them from 25% to 50% starting from June 4th. The decision, presented as a bulwark in defense of the American steel industry, was quite positively welcomed by the workers present, but has raised concerns among economic analysts and international commercial partners.

« Our steel industries and aluminum are returning to normal as never before, » he said Trumpwith his usual triumphalistic tone, then underlining the importance of a « strong steel industry » not only for economic prosperity, but also for national security of the United States.

A 14 billion agreement with Nippon Steel

Parallel to the announcement of the duties, Trump celebrated An agreement between the US Steel and the Japanese Nippon Steel Corp.calling it a « blockbuster » of over 14 billion dollars. The agreement provides for significant investments, including 2.2 billion in Pennsylvania and 7 billion for plants and mines in different states, with the promise to create over 100 thousand jobs.

However, the details of the agreement remain vague. Trump has assured that Us Steel will keep control and that there will be no layoffs or plants closures. Provisions are under discussion such as a Board of Directors by American majority and a federal monitor to ensure compliance with national security agreements.

Reactions and worries

As we said, Trump’s move raised conflicting reactions. While the workers and some local officials have expressed cautious optimism, hoping that promised investments guarantee jobs and renew obsolete systems, The United Steelworkers union remains skeptical, citing the lack of details and concerns about national security and workers’ rights. On the international front, the European Union has announced rapid and proportioned countermeasures, considering the rates imposed by Trump « unjustified » and « harmful » for transatlantic trade. European countermeasures could affect US goods for a value of 26 billion euros.

Economic implications

But what could be the effects? According to experts, the increase in duties could have negative effects on the US economy, slowing down building projects, aggravating the housing crisis and increasing rents. Goldman Sachs has revised the growth forecasts for this year, bringing them to 1.7% from the previous 2,2%, increasing the probability of a 20% recession. The new decision to double the duties on steel and aluminum represents a further step in the protectionist policy of the Trump administration. While the declared intent is to strengthen the national industry and protect American jobs, economic implications and international commercial tensions raise questions about sustainability and effectiveness of these measures. As pointed out by the President of the European Commission, Ursula von der leyen« Duties are taxes: they are harmful to businesses and even worse for consumers ».

The usual Trumpian reassurances

For its part, President Trump tried to reassure public opinion, stating that the duties will lead to a « transition » in the economy, pushing companies to bring production back to the United States. However, he recognized that it will take time to see the benefits, declaring: «It takes some time. But I think it will be fantastic for us ». The Americans will have it, however, all this time?