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Who likes tariffs? Some US industries endeavor for them.

The United States buy more steel from Canada than from any other country, and these imports are much more expensive among tariffs, which President Trump, this week.

This is good news for Stephen Capone, President of the Capone Iron Corporation in Rowley. Too long, he said, Canadian competitors flooded the New England market with cheap steel products and prevent his and other local companies from winning business.

“No matter how low we offer, you can undercut us with every job,” said Capone. “You decimate our market.”

Many companies are against Mr. Trump’s tariffs and fear that they will increase the costs and provoke retaliation against their products by other countries. Jim Farley, Managing Director of Ford Motor, said last month that the tariffs in the US car industry could blow a hole, and retailers have warned that they would lead to higher prices for consumers.

But there is deep support for his trade policy in the business world, especially among managers who say that their industries have been damaged by unfair trade.

In particular, the leaders of American steel and aluminum companies have long claimed that foreign rivals undercut them because they benefit from subsidies and other state support. And they say that the tariffs, when they were imposed without gaps, effectively have more investments in the United States.

Mr. Trump exposed broad tariffs on Thursday, which he had imposed on imports from Canada and Mexico two days earlier. The tariffs for steel and aluminum products, which were approved as part of a national security determination with the name Section 232 of the Commercial Review Act, are to come into force on Wednesday.

“President Trump was chosen with a permanent mandate to improve the competitive conditions for American manufacturers and workers with tariffs, and he undertakes to deliver this mandate – also for our keystone steel and aluminum industry,” said Kush Desai, a spokesman for the White House, in a statement.

The tariffs apply 25 percent to steel and aluminum imports from Canada, Mexico and other countries.

In his first administration, Mr. Trump imposed the tariffs of steel and aluminum in section 232, but Mexico and Canada received exceptions from them when a new trade agreement between these countries and the United States came into force in 2020.

Jesse Gary, Managing Director of Century Aluminum, an American aluminum producer, supported the aluminum tariffs during Mr. Trump during the first term, but said that they had made the exceptions less effective and were glad that they were resumed again.

“The new tariffs will resume these gaps and enable us to invest again and invest more production here in the USA,” he said.

Philip Bell, President of Steel Manufacturers Association, an American trading group, said that steel imports have been increased in recent years. He said that Mexican companies imported cheap steel from China, made minor changes and exported it to the USA as if it had been manufactured in Mexico.

The Biden administration moved last year to stop the practice by using a 25 percent tariff on Mexican steel that was melted or cast before North America before being transformed into a finished product. Mr. Trump’s tariffs continue by applying for all steel from Mexico.

“The President sends our trading partners a clear message that it is time to make their trade relationships seriously with the United States,” said Bell.

Canadian steel companies reject allegations that they violate trade rules.

“Our members are deeply committed to a North American steel market that is protected from unfair trade practices, and we do not contribute to the global overcapacity with our production levels, which remain under Canadian steel demand,” said Catherine Cobden, President of the Canadian Steel Produciation, a trade group.

While the tariffs could enable us to deal with steel and aluminum manufacturers, the question arises whether they make the large investments required to expand the capacity.

Steel companies did this after the tariffs of the first Trump administration. Timna Tanner, managing director at Wolfe Research for metal companies, said US companies could add enough capacities to replace imported steel in many markets. But she added to the fear that creating a flood could alleviate its plans.

“The mills don’t seem to run so hard because they also believe that this could reduce prices under pressure, and they would rather enjoy higher prices,” said Ms. Tanner.

According to the American Iron and Steel Institute, around 23 percent of the market made up for around 23 percent of the market last year. The United States depend much more on aluminum imports.

American jewelry dominates the production of primary aluminum – aluminum, which is derived from raw materials rather than recycling – but today China does far more than any other country. The trade department found that the United States imported 90 percent of their primary aluminum in 2016.

The Economic Policy Institute, a left -handed Think Tank, rated Mr. Trump’s tariffs for the revival of the primary aluminum industry.

Century, the largest producer of primary aluminum in the United States, plans to build a new aluminum melting, the first in the United States in 45 years. This is the aim of granting up to 500 million US dollars, which was awarded by the Biden administration using funds from the inflation reduction act and the infrastructure investment law. The century must continue to receive significant additional financing in order to build the work. And the Trump administration checks grants as part of the law on inflation reduction.

When asked whether the review endangers the plans, Gary said: “We believe that the new project overall fits the type of investment that this administration would like to carry out” and added that the construction of the work could create 5,500 jobs and that it would require 1,000 full -time employees.

Nevertheless, the US aluminum industry is divided into Mr. Trump’s latest tariffs, and largely because American companies have plants in Canada affected by the taxes. Charles Johnson, President of the Aluminum Association, a trading group, said last month on LinkedIn that the United States supported some aspects of the Section 232 tariffs, “a reliable metal source from Canada to support today’s jobs and investments”.

If tariffs increase the prices of steel and aluminum, companies that use the metals in their products can pass on the additional costs to consumers – or replace substitute substances.

The unions also support Mr. Trump’s tariffs, but sometimes have objections to the way he imposed them. The United Steelworker Union criticized his goal of Canada, where it has over 225,000 members and said that the steel trade with Canada was fair.

“We are asking the president to advance between trading bifes and trustworthy allies who reliably work with us in order to drive our national and economic security forward,” said David McCall, International President of United Steelworkers.

Mr. Capone, the Manager of Massachusetts Steel, wants Mr. Trump’s steel dulls even harder. They free steel imports from Canada from tariffs when the Canadian company produces steel that are produced in American mills. He said a lot more work was transformed in the production of the steel – he transformed it into products such as stairs and grids – than into the manufacture, and said this should be reflected in the tariffs.

“The 232 tariffs prefer the mills, not the manufacturers,” said Capone.

(Tagstotranslate) US politics and government of the United States

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