Trump Plans Significant Increase in U.S. Steel and Aluminum Import Duties

As reported by CNBC, former President Donald Trump has announced intentions to significantly increase tariffs on imported steel and aluminum from 25% to a striking 50%. This move comes amidst ongoing legal challenges regarding various trade policies initiated by his governance.

In a post on his Truth Social platform dated may 30, Trump declared that these heightened tariffs would take effect starting June 4, describing it as a necesary “jolt” for American manufacturing. Earlier that same day at a U.S.Steel facility in Pennsylvania,he also voiced support for a contentious merger with Japan’s Nippon Steel. He assured attendees that this partnership would not lead to job losses and highlighted Nippon’s commitment of $14 billion in investments over the next year.

However, there’s skepticism surrounding whether Trump will actually implement these tariff increases.Wall Street investors have grown doubtful about the administration’s resolve in executing its trade agenda. This uncertainty has even led to the creation of an acronym—“TACO,” which stands for “Trump Always Chickens out”—coined by Financial Times columnist Robert Armstrong who noted how quickly the administration tends to retreat when faced with market backlash from proposed tariffs.

The legality of Trump’s tariffs faced scrutiny on may 28 when the U.S. Court of International Trade (USCIT) ruled against what was termed “Liberation Day” levies, stating that such duties could not be imposed under emergency powers without proper authority. Yet just hours later,a federal appeals court allowed existing tariffs to remain while legal proceedings continue; notably,those on aluminum and steel were unaffected due to their implementation under national security concerns as defined by the Commerce Department.

Meanwhile, discussions are underway aimed at rekindling negotiations with China regarding trade agreements. A source mentioned in Bloomberg expressed hopes for talks between Trump and Chinese President Xi Jinping in early june. On May 30, Trump accused China of breaching their preliminary agreement made during a temporary truce concerning reciprocal tariffs; however, China countered this claim on June 2 by asserting that it is actually the U.S. violating terms thru tightened export restrictions related to semiconductor technology and plans affecting Chinese students’ visas.