Trump plans to scrap some tariffs on steel products – FT

The US presidential administration is currently reviewing the list

US President Donald Trump plans to lift some tariffs on steel and aluminum products, the Financial Times reported, citing sources familiar with the situation.

Officials at the Department of Commerce and the Office of the US Trade Representative believe that tariffs harm consumers by leading to higher prices for certain goods.

Last year, Trump imposed 50% tariffs on steel and aluminum imports and has repeatedly used the issue of tariffs as a bargaining chip in negotiations with a number of trading partners. His administration is currently reviewing the list of goods to which they apply and plans to exempt certain products from tariffs, as well as halting the expansion of the list and instead launching a more targeted investigation into specific items from a national security perspective.

Last year, the US Department of Commerce announced tariff increases on more than 400 steel and aluminum products, including wind turbines, household appliances, bulldozers and other heavy equipment, railroad cars, and more.

At the same time, according to Wells Fargo & Co. analyst Tim Tanners, Trump’s tariffs on steel imports will stimulate mergers and acquisitions in the US steel industry this year, Bloomberg writes.

The tariffs have helped US steel producers, who have seen reduced competition from cheaper imports and are able to attract new buyers for products manufactured in the United States.

According to Tanners, this means a large cash flow for these companies, and they will have to decide how to allocate the funds. Antitrust legislation has also become less stringent, which, in her opinion, reduces the likelihood of deals being blocked by regulators.

Recall that the European Parliament has unblocked a trade agreement with the US with new conditions. The institution’s version includes provisions on expiry and suspension. European lawmakers also agreed on a clause obliging the European Commission to review the agreement six months after it enters into force if the US does not reduce tariffs from 50% to a base level of 15% on EU products containing steel.