Key points:

• President Trump signed proclamations imposing 25% tariffs on all steel and aluminum imports.
• The new tariffs cancel previous exemptions for key trading partners, including Canada, Mexico, and Brazil.
• Economists warn that the tariffs could lead to higher consumer prices and disrupt supply chains.

In a decisive move that signals a new phase in his trade war, President Donald Trump announced on Monday the imposition of 25% tariffs on all steel and aluminum imports, a decision that could have widespread implications for both domestic consumers and international trading partners. The announcement follows months of speculation regarding increases in duties on these vital materials, which are essential to numerous U.S. industries.

Trump, addressing reporters, stated, “Any steel coming into the United States is going to have a 25% tariff.” This tariff applies to all countries without exception, as the U.S. looks to protect its domestic industries from what the administration describes as unfair foreign competition. Notably, the duties represent a significant escalation in the ongoing trade tensions, particularly with traditional allies and major suppliers like Canada and Mexico.

The move cancels existing exemptions that had allowed certain amounts of steel and aluminum to enter the U.S. duty-free, with officials stating that these exemptions had eroded the effectiveness of earlier tariffs. The administration is determined to implement a new standard requiring steel and aluminum to be “melted and poured” or “smelted and cast” within North America, aiming to combat circumvention of the tariffs by way of transshipments through other countries.

In 2018, Trump initiated a similar set of tariffs with a 25% duty on steel and a 10% duty on aluminum, designed to aid domestic producers. Peter Navarro, Trump's trade adviser, emphasized that these measures would reinforce national security while boosting domestic production, asserting, “This isn't just about trade. It's about ensuring that America never has to rely on foreign nations for critical industries like steel and aluminum.”

However, the economic implications of these tariffs could be severe. Analysts have voiced concerns that the new duties might raise prices on various consumer goods, including construction materials, automobiles, and household items, due to the increased costs of imported raw materials. A report from Business Insider noted that many economists believe tariffs will inevitably burden consumers. Projections suggest that these tariffs could result in higher inflation rates and disrupt established supply chains.

China has been particularly quick to respond, imposing retaliatory tariffs on a range of U.S. goods while calling for dialogue instead of unilateral actions. A spokesperson for China’s Foreign Ministry stated, “There are no winners in trade wars and tariff wars. They harm the interests of the people of both countries.” This backdrop of escalating tensions raises further questions about the potential for wider trade conflicts as other countries react to similar measures.

The U.S. automotive sector and other industries such as construction, which depend heavily on steel and aluminum, are keeping a close watch on these developments, fearing disruptions and increased operational costs. Trade analysts also speculate that these tariffs could create ripple effects, prompting nations to reconsider their trade strategies with the U.S. as uncertainty looms over future relations.

The new tariffs underscore the Trump administration's ongoing commitment to reshaping America’s trade policy, a strategy that may have profound implications in the months to come as various countries adjust to these new economic realities. For further reading, refer to the full articles on VOA News and Bangkok Post.