Ordering combative action on foreign trade, President Donald Trump declared Thursday the U.S. will impose steep tariffs on steel and aluminum imports, escalating tensions with China and other trading partners and raising the prospect of higher prices for American consumers and companies.
With “trade war” talk in the air, stocks closed sharply lower on Wall Street. Overseas, Trump’s words brought a stinging rebuke from the president of the European Commission. Though the president generally focuses on China in his trade complaining, it was the EU’s Jean-Claude Juncker who denounced his plan as “a blatant intervention to protect U.S. domestic industry.” Juncker said the EU would take retaliatory action if Trump followed through.
Trump, who has long railed against what he deems unfair trade practices by China and others, summoned steel and aluminum executives to the White House and said next week he would levy penalties of 25 percent on imported steel and 10 percent on aluminum imports. The tariffs, he said, would remain for “a long period of time,” but it was not immediately clear if certain trading partners would be exempt.
“What’s been allowed to go on for decades is disgraceful. It’s disgraceful,” Trump told the executives in the Cabinet Room. “When it comes to a time when our country can’t make aluminum and steel … you almost don’t have much of a country.”
The president added: “You will have protection for the first time in a long while, and you’re going to regrow your industries. That’s all I’m asking. You have to regrow your industries.”