Trump has doubled the steel tolls – EU is affected
The White House justifies the increased customs with the fact that imports of steel and aluminum are a threat to the security of the nation and that the Trump government wants to support domestic metal producers in the United States, according to the presidential order – published on the social network X.
The increase – which does not apply to steel and aluminum from the UK, which remains at 25 percent – comes at the same time as the United States is negotiating trade relations with a wide range of parties, including the EU, China, Japan and India – including the penalties that the Trump government paused until July 9.
Neighboring countries Canada and Mexico are the ones that are hit hardest by US customs on the metals. They are by far the largest steel and aluminum exporters to the US market.
Customs will push up steel prices in the US and, according to analysts, can create new trading patterns when steel and aluminum producers are looking for new markets for their products with lower customs. This can create a downward pressure on prices for European steel and aluminum users.
For European metal producers This means profitability problems, as they are already wrestling with weak demand at home and pressed profit margins.
-This has forced many producers to reduce production and close factories as they find it difficult to compete with imported low-price steels from countries where production costs are much lower, says Kaye Ayub, Head of Analysis at the MEPS International consulting office to the TV channel CNBC.
Trump expressed a threat to double steel tariffs during a visit to a steel factory in Pennsylvania last Friday, where he also provided his support to sell the steel company US Steel to Japanese Nippon Steel.
