By imposing tariffs on steel and aluminum that are imported into the U.S., the president had tried to revive the declining metal market in the U.S.
To keep away competition from other countries, President Trump levied the tariffs. Tariffs which were imposed almost a year ago has been able to bring back domestic investments. Plants that were almost closed have been put to use in the metal industry.
This has also spurred employment to a certain extent. Tariffs have been imposed by the Trump administration to protect the national security of the country.
However, the prices of steel and aluminum have increased in the U.S. As the government has to undergo a complex process to procure the metals for the purpose of production, entrepreneurs are finding their cost price going up.
Stock prices of U.S. Steel and ArcelorMittal have plunged after the tariffs.
Further, job opportunities are not much. Only about 381,000 people in the U.S. have found jobs in the primary metal industry, while it was 376,000 people in the previous year.
Production of aluminum and steel has seen a rise, but a very marginal rise. However, production levels are almost 3 percent less than what is produced in China.
Tariffs were initially imposed on metals from countries like Canada, Mexico, China, Russia, Japan, and Europe. However, the tariffs were later removed from countries like Canada and Mexico, though they were subject to 10 percent on aluminum and 25 percent on steel. Tariffs continue on other countries.
After the tariffs were imposed by the U.S. on metals, aluminum prices have fallen almost 20 percent from last year. Through government-supportive smelters, China has been producing additional metal supply to meet global needs.