President Donald Trump has announced that there will be no exemptions on the recent steel and aluminum tariffs, with additional duties set to take effect early next month. Speaking aboard Air Force One, Trump emphasized that the 25% tariffs on steel and aluminum imported into the U.S. are permanent. Reciprocal and sectorial tariffs are scheduled to be implemented on April 2, which Trump described as a “liberating day.” The president stated that these tariffs are in response to other countries charging the U.S., and that additional tariffs will be imposed on autos, steel, and aluminum.
The decision to raise tariffs without exemptions was made to support U.S. industry and has led to retaliatory measures from Canada and the European Union. Mexican President Claudia Sheinbaum has indicated that her government will wait for a possible resolution before deciding on retaliation. The uncertainty surrounding the tariffs has caused fluctuations in U.S. stocks and raised concerns about a potential recession.
Tariffs are taxes imposed on imports from other countries, and while they may benefit domestic manufacturers, they can also impact global supply chains. Trump’s decision to implement tariffs is part of an effort to address issues related to migration and illegal drugs entering the U.S., for which he believes China, Canada, and Mexico have not done enough.
A recession is a prolonged period of economic downturn characterized by factors such as high unemployment, reduced corporate profits, stock market declines, and falling home prices. The threat of tariffs and rising costs of goods are causing concerns about the potential impact on the economy, although Trump has not directly addressed whether his tariff plan could contribute to a recession.
