President Donald Trump has reinstated tariffs on steel and aluminum imports, imposing a 25% tax on all such imports. Initially, the president threatened to double the tariff to 50% for imports from Canada but later retracted this threat after Ontario suspended its retaliatory plans. The tariffs are expected to increase costs for American companies utilizing these metals, including automakers, construction firms, and beverage manufacturers. Economists warn that unilateral tariffs could raise prices, cost American jobs, and strain alliances. Trump’s previous tariffs in 2018 had a mixed impact, benefiting domestic producers but causing a nearly $3.5 billion drop in production for downstream manufacturers. The new tariffs may lead to similar outcomes with small gains for U.S. producers but larger losses for the broader manufacturing sector. Although the tariffs alone may not significantly harm the U.S. economy, the unpredictability of Trump’s trade agenda risks reigniting inflation and slowing growth. — news from The Associated Press
