The U.S. lacks the production capacity to meet domestic demand for steel and aluminum, else imports wouldn’t be necessary. I.e. domestic aluminum only covered about 15% of demand in 2024
With a 50% tariff, businesses relying on these materials will still have to import, but at much higher costs.
Trump believes this will boost domestic production, and even if that was true it would take years. However, in reality, it will likely reduce consumption due to skyrocketing prices, leading to lower demand, layoffs, and eventually recession.
Aluminum requires a ton of cheap electricity/energy to produce. Which certain provinces in Canada have abundance of, along with the ore. Production isn’t going to US because he put tariffs.
The U.S. lacks the production capacity to meet domestic demand for steel and aluminum, else imports wouldn’t be necessary. I.e. domestic aluminum only covered about 15% of demand in 2024
With a 50% tariff, businesses relying on these materials will still have to import, but at much higher costs.
Trump believes this will boost domestic production, and even if that was true it would take years. However, in reality, it will likely reduce consumption due to skyrocketing prices, leading to lower demand, layoffs, and eventually recession.
The 1920s are calling.
Aluminum requires a ton of cheap electricity/energy to produce. Which certain provinces in Canada have abundance of, along with the ore. Production isn’t going to US because he put tariffs.