“Last week, the Trump administration announced it was imposing tariffs on steel and aluminum of 25 and 10 percent respectively. The president has stated the move is necessary on the grounds of national security and in order to fight back against an assault on the U.S. by foreign competitors. Saving American steel and aluminum jobs was one of Trump’s pledges on the campaign trail with both industries impacted by the import of cheaper products. Even though it fits perfectly with his ‘America First’ policy, could the move to impose tariffs have ramifications?
“It has already caused friction within the Republican Party, where there are fears of a trade war, and some have questioned whether it will undermine decades of progress in international trade. Protectionism could also have an impact at state level. Although tariffs could provide U.S. steel and aluminum companies with welcome relief in a market flooded with foreign competition, they have already resulted in retaliatory tariffs on key U.S. exports to other countries. High steel prices could also have far-reaching effects on U.S. states, hitting important industries like auto manufacturing and construction.”