US to impose tariffs of 25 percent on imported steel and 10 percent on aluminum: Trump

Vastavam web: U.S. President Donald Trump announced on Thursday he would impose tariffs of 25 percent on imported steel and 10 percent on aluminum, in a move the administration said would protect U.S. industry, but which critics said would fail to boost jobs and risked stoking a trade war with China.Trump, speaking after a meeting with U.S. steel and aluminum makers said the duties would be formally announced next week.

News of the tariffs drove the stocks of U.S. domestic steel and aluminum makers sharply higher, but also hit sentiment on Wall Street due to the potential impact of higher costs on consumers.The move, which came after what one person with direct knowledge of the discussions described as a night of “chaos” in the White House due to frequent switching of positions in the administration, was sharply criticized by some senior Republican legislators.China has already threatened to curb imports of U.S. soybeans in retaliation, while the European Union has said it will consider action as well. China’s top trade official Lui He is in Washington for trade talks.

After Trump’s statement, AK Steel Holding was up almost 12 percent, U.S. Steel Corp was up 8 percent and Nucor rose 3.6 percent. By contrast, industrial stocks such as Boeing fell, with traders citing tariffs, which would hit manufacturers’ costs.It had appeared unlikely that Trump would announce the tariffs on Thursday after a night of back and forth inside the administration.

“There was a lot of movement within the past 12, 16 hours,” said the source who had knowledge of the discussions, but who declined to be named due to the sensitivity of the issue.The administration has also cited national security interests for its action, saying the United States needs domestic supply for its tanks and warships. Contrary to the action announced by Trump on Thursday, the Department of Defense had recommended targeted steel tariffs and a delay in aluminum duties.Trade tensions between the United States and China have risen since Trump took office in 2017 and the administration is also pushing on what it regards as forced technology transfers to China.