Donald Trump has asserted that the tariff on steel will increase twofold to 50 percent, which has provoked anger from the Australian government.
The US President revealed the newest move in his trade battle during a rally at a steel plant in Pennsylvania on Saturday morning, as per the local Australian timing.
The Australian Trade Minister, Don Farrell, stated that the new increase in tariffs is unwarranted.
“Australia’s stance remains firm and unambiguous. These tariffs are unwarranted and hardly the behavior expected from a friend,” he stated in an official release.
They are acts of economic self-harm that will solely impact consumers and businesses dependent on unrestricted and equitable commerce.
We will keep engaging and push hard for the elimination of these tariffs.
Data from the US government indicates that the cost of steel products imported into the US has risen by 16 percent since the start of Trump’s second term.
Steel and aluminum used for Australian car components are now subject to a 25 percent tariff, following President Trump’s broad protectionist measures.
The rally held in Pennsylvania on Friday took place close to a facility owned by US Steel. The President mentioned that the substantial Japanese steel company Nippon has made investments in this American enterprise.
“We’re gathered here today to commemorate a landmark deal that ensures this towering American corporation remains rooted in America,” the President stated.
You’re going to remain an American company, you understand that, correct?
“If lacking steel means lacking a nation, then without a nation, building a military becomes impossible. So what will we do? Go to China for the steel used in our army tanks?” Trump questioned.
The Trump administration first pledged to prevent Nippon from acquiring US Steel. The specifics of this “landmark deal” have yet to be disclosed. In a statement, Nippon verified that an agreed-upon “collaboration” had taken place.
This week, a U.S. trade court barred most of President Trump’s tariffs, stating that he had exceeded congressional authority by invoking emergency powers to manage trade regulations.
The decision didn’t cover the steel, aluminum, and vehicle tariffs, as these were enacted under separate legislation.
The Trump administration promptly lodged an appeal with the Court of International Trade regarding their decision and cast doubt upon the court’s jurisdiction.
The court’s ruling came out on Wednesday in the US, causing financial markets to rise following the announcement.
The legal action was initiated by 12 U.S. states along with five small enterprises claiming that the tariffs impeded their operational capabilities. Should the judiciary approve, the government’s challenge would proceed to the Court of Appeals, potentially followed by the Supreme Court if required.
One of the few nations that purchases more goods from the United States than it sells back to them is Australia.
has reached out to several of Australia’s biggest steel producers for their input after the recent escalation in tariff threats.
BlueScope has approximately 4000 American employees, with its primary U.S. facility located in Ohio.
Nevertheless, the firm ships approximately 300,000 tons of semi-finished steel from Australia to the United States annually.
