Trumps 25% tariffs on all steel and aluminum imports go into effect

President Donald Trump officially increased tariffs on all steel and aluminum imports to 25% on Wednesday, promising that the taxes would help create US factory jobs at a time when his seesawing tariff threats are jolting the stock market and raising fears of an economic slowdown.Trump removed all exemptions from his 2018 tariffs on the metals, in addition to increasing the tariffs on aluminum from 10%.His moves, based off a February directive, are part of a broader effort to disrupt and transform global commerce.

The US president has separate tariffs on Canada, Mexico and China, with plans to also tax imports from the European Union, Brazil and South Korea by charging “reciprocal” rates starting on April 2.Trump told CEOs in the Business Roundtable on Tuesday that the tariffs were causing companies to invest in US factories.The 8% drop in the S&P 500 stock index over the past month on fears of deteriorating growth appears unlikely to dissuade him, as Trump argued that higher tariff rates would be more effective at bringing back factories.“The higher it goes, the more likely it is they’re going to build,” Trump told the group.

“The biggest win is if they move into our country and produce jobs.That’s a bigger win than the tariffs themselves, but the tariffs are going to be throwing off a lot of money to this country.”Trump on Tuesday threatened to put tariffs of 50% on steel and aluminum from Canada, but he chose to stay with the 25% rate after the province of Ontario suspended plans to put a surcharge on electricity sold to Michigan, Minnesota and New York.In many ways, the president is addressing what he perceives as unfinished business from his first term.

Trump meaningfully increased tariffs, but the revenues collected by the federal government were too small to significantly increase overall inflationary pressures.Trump’s 2018 tariffs on steel and aluminum were eroded by exemptions.After Canada and Mexico agreed to his demand...