Factbox-The top sources of U.S. steel and aluminium imports

President Donald Trump announced on Friday his decision to double tariffs on steel and aluminum imports to 50%, up from the current 25%. This move is set to take effect starting next Wednesday, escalating tensions in the global trade arena.

The impact of these increased tariffs will be felt by major trade partners of the United States. When it comes to steel, approximately 25% of steel used in the U.S. is imported. The primary sources of imported steel are Mexico, Canada, Japan, South Korea, and Germany. Despite China being the largest steel producer and exporter globally, it sends very little steel to the United States. In fact, tariffs of 25% imposed in 2018 effectively blocked most Chinese steel from entering the U.S. market. Last year, China exported only 508,000 net tons of steel to the U.S., accounting for just 1.8% of total American steel imports.

On the other hand, the U.S. heavily relies on aluminum imports, with roughly half of all aluminum used in the country being imported. The majority of aluminum imports come from Canada, with imports from Canada totaling 3.2 million tons last year, double the combined imports from the next nine countries. The United Arab Emirates and China are the next largest sources of aluminum imports, at 347,034 and 222,872 metric tons, respectively. Despite the heavy reliance on aluminum imports, the U.S. aluminum smelting industry is relatively small on a global scale, accounting for just 1.73% of total global smelter capacity according to the U.S. Geological Survey.

The decision to increase tariffs on steel and aluminum imports is expected to have significant implications for global producers and further intensify the ongoing trade war. The move comes as part of President Trump’s efforts to protect and promote American industries, but it also risks sparking retaliation from affected countries.

In conclusion, the decision to double tariffs on steel and aluminum imports will have far-reaching consequences for both the U.S. and its major trade partners. It remains to be seen how other countries will respond to these increased tariffs and how the global trade landscape will be shaped in the coming months.