Trump Announces High Duties on Raw Materials

President Donald J. Trump of the United States announced substantial tariff duties hikes on several raw materials entering the U.S.

Image of a U.S. Steel plant.

Earlier on in his presidential tenure, the president levied tariffs on Canada, Mexico, and China, with them serving as primarily offensive tariffs to provoke concessions regarding the U.S. trade imbalance, as well as border security/fentanyl trade. Many of these tariffs have been postponed as concessions have been made by America's North American neighbors.

However, the president is not yet concluded with his initial phase of tariff hikes. Trump, on Monday, announced that he will be raising tariffs by 25% on foreign-made steel and aluminum, especially on key American trade allies like Japan and Germany.

The president has stated that he will also implement several "reciprocal" tariffs at the middle of the week to account for the nation's high trade deficit with large trading centers.

Many investors reacted positively to the Trump tariffs. Especially in the Nasdaq and the steel industry, stocks surged as investors became hopeful that these tariffs could promote domestic manufacturing growth and job creation. The Nasdaq is up by over 1% on Monday as of noon.

However, many concerns have been raised about the tariffs. Key U.S. manufacturers like Boeing and GM import a great quantity of these steel and aluminum to produce manufactured goods; many of their respective stocks fell as a result. Meanwhile, key financial analysts have cited concerns of a possible period of stagflation which may accompany these tariffs, resulting in higher inflation and lower job growth.

As of now, the majority of Americans cited their approval for these tariffs; President Trump's approval rating has been seen to have surpassed 50% in most recent approval polls.