Trump to raise steel and aluminium tariffs on hundreds of goods | Trade War News

New US tariffs covering 407 products will take effect immediately.

The United States Commerce Department is set to hike steel and aluminium tariffs on more than 400 products including wind turbines, mobile cranes, bulldozers and other heavy equipment, along with railcars, furniture and hundreds of other products.

The government agency announced the new development on Tuesday.

The department said 407 product categories are being added to the list of “derivative” steel and aluminium products covered by sectoral tariffs, with a 50 percent tariff on any steel and aluminium content of these products.

The department is also adding imported parts for automotive exhaust systems and electrical steel needed for electric vehicles to the new tariffs.

A group of foreign automakers had urged the department not to add the parts, saying the US does not have the domestic capacity to handle current demand.

The new tariffs take effect immediately and also cover compressors and pumps.

“Today’s action expands the reach of the steel and aluminum tariffs and shuts down avenues for circumvention – supporting the continued revitalisation of the American steel and aluminum industries,” said Under Secretary of Commerce for Industry and Security Jeffrey Kessler.

Steelmakers including Cleveland-Cliffs had petitioned the administration to expand the tariffs to include additional steel and aluminium auto parts.

Since returning to the presidency, Trump has imposed a 10 percent tariff on almost all US trading partners, alongside varying steeper levels on dozens of economies such as the European Union and Japan.

Certain sectors have been spared from these countrywide tariff levels, but instead were targeted under different authorities by even higher duties.

Some businesses have already had to raise prices because of increased tariffs. On Tuesday, on the heels of its earnings report, Home Depot said it would need to raise prices on imported goods that it sells.

“There will be modest price movement in some categories,” Home Depot Chief Financial Officer Richard McPhail said on a Tuesday conference call.

Other brands that have recently announced price increases include the world’s largest consumer goods company, Procter and Gamble, which last month said it would need to raise prices on a quarter of the goods it produces.