U.S. consumers face rising costs as former President Donald Trump's latest tariffs on steel and aluminum imports took effect Monday, escalating tensions in global trade. The 25% duty – expanded to all trading partners after earlier hikes targeting Canada, Mexico, and the Chinese mainland in February – is projected to increase inflation and add $9 billion annually to household expenses, according to nonpartisan economic analyses.
Experts warn the policy could trigger price spikes for goods ranging from automobiles to canned beverages. \"This isn't just about metals – it's a hidden tax on everyday purchases,\" said Georgetown University trade analyst Clara Mendez. Recent data shows U.S. inflation already climbed 0.8% in sectors impacted by previous tariffs.
The move has drawn criticism from G20 trading partners, with European Commission officials threatening retaliatory measures. Observers note the tariffs complicate efforts to stabilize supply chains still recovering from pandemic disruptions.
While proponents argue the tariffs protect domestic industries, critics highlight potential job losses in manufacturing sectors reliant on imported materials. The International Monetary Fund estimates similar tariffs in 2018-2019 reduced U.S. GDP growth by 0.3% annually.
Reference(s):
Trump's tariff tactics to stoke inflation, increase tax burden
cgtn.com
