Trump claims tariffs on foreign nations will rescue US steel industry: report

Trump claims tariffs on foreign nations will rescue US steel industry: report
© Getty Images

President TrumpDonald John TrumpMia Love pulls ahead in Utah race as judge dismisses her lawsuit Trump administration denies exploring extradition of Erdoğan foe for Turkey Trump congratulates Kemp, says Abrams will have 'terrific political future' MORE is claiming that steel tariffs imposed on China and other foreign nations will rescue the U.S. steel industry. 

Trump made the assertion in an interview with The Wall Street Journal on Wednesday — one in which he said that steel prices may be “a little more expensive" in the short term, but that they eventually would drop, ultimately protecting America's steel industry. 

"[Competition will be] internal, like it used to be in the old days when we actually had steel, and U.S. Steel was our greatest company,” Tump told The Journal.

ADVERTISEMENT

Trump's comments come amid growing trade disputes between the Trump administration and foreign nations, like China. Trump announced earlier this year that he would impose global tariffs of 25% on imported steel and 10% on aluminum, citing national security concerns. The widely criticized move escalated tensions between the U.S. and longstanding trade allies, including Canada, Mexico and European Union nations.

Earlier this month, the Trump administration announced it would impose 25 percent tariffs on $16 billion worth of Chinese imports beginning Aug. 23. The new round of tariffs marked the completion of Trump's threat to impose $50 billion of import taxes on Chinese goods, the first $34 billion of which went into effect on July 6.

China has responded to such measures with retaliatory tariffs against the U.S. But Trump said the tariffs are working, according to The Journal, and pointed to steel companies opening new U.S. plants as justification. 

According to the Journal, Trump said "our steel industry is one of the talks of the world" and that the industry is "booming."

Despite Trump's praise, The Journal notes that, though some some steelmakers are expanding production in the U.S., other U.S. manufacturers are still dependent on imported metals.

In addition, the administration estimates that tariffs will produce a reduction in imports, The Journal reported. 

Trump, in recent months, has frequently complained that other countries are treating the U.S. as a “piggy bank” and that the U.S. is being “robbed” by their trade policies. The president has also said the tariffs have been designed to promote better trade deals. 

But many have speculated that the affects could cause significant harm to U.S. industries. 

A number of U.S. companies and industries have said the tariffs have negatively affected their businesses. The Department of Agriculture last month announced a $12 billion plan to aid farmers hurt by Trump’s trade battles.