Next week onwards steel and aluminum imports in the US would be subject to tariffs, President Trump confirmed. This decision would impact producers like China and Canada.
Tariff on steel items would be 25% and that of aluminum would be 10%. The US is dependent on over 100 countries for steel supply. It imports four times more steel than it exports.
After the announcement of tariffs, the Dow Jones index closed down 1.7%, while the value of shares in American steel market jumped.
This news is going to affect many US friendly countries along with rival country of China. It is not yet clear if any country could be exempted from this tariff.
In the announcement of the news, Canada’s Foreign Minister Chrystia Freedland said any tariffs on their metal products would not be accepted at all.