Trump plans to reduce tariffs on some steel and aluminum products, after previously imposing tariffs of up to 50%, in an effort to address the rising cost of living and declining approval ratings ahead of the November midterm elections.
According to the Financial Times (February 13), the US government is reviewing the list of goods subject to tariffs, considering exemptions for some items and halting the expansion of the list, while shifting to more targeted national security investigations of specific products.
- The US is XEM partially exempting steel and aluminum from tariffs.
- A maximum tax of 50% is considered to drive up the prices of consumer goods such as canned food and canned beverages.
- The UK, Mexico, Canada, and the EU could benefit if the US eases tariffs.
The tariff adjustment plan is under review.
The Trump administration is reportedly planning to exempt some goods, halt the expansion of the tariff list, and instead conduct national security investigations targeting individual products.
Last summer, the U.S. imposed tariffs of up to 50% on some steel and aluminum products, and expanded them to include many other metal products, including washing machines and ovens. According to three sources familiar with the matter, the list of items subject to tariffs is being XEM to exclude some items and avoid further expansion.
This move comes as Trump faces a cost of living crisis, a factor believed to have weakened his approval ratings ahead of the midterm elections in November.
Impact on consumers and trading partners
U.S. trade officials believe that tariffs are harming consumers by raising the prices of many popular goods.
Sources indicate that officials at the U.S. Department of Commerce and the Office of the U.S. Trade Representative believe that tariffs are driving up prices on products such as baking trays, food containers, and beverage cans. Easing tariffs, if implemented, could reduce price pressure on some consumer goods.
Countries that could benefit from the US easing tariffs on steel and aluminum products include the UK, Mexico, Canada, and EU member states.
