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Trump orders aluminum, steel tariffs on national security grounds

President Donald Trump signed orders enacting tariffs of 25% on global steel imports and 10% on aluminum, pledging to boost American production and security.

The move by Trump on March 8 was hailed by some U.S. steel producers but also left some industries and Republican lawmakers concerned about adverse effects on U.S. companies that rely on imported steel and aluminum that could lead to job losses.

Trump, flanked by top administration officials as well as American steel and aluminum workers brought in for the announcement, said the tariffs will go into effect in 15 days. Trump said they are a measure of economic and national security interest, as the U.S. now relies too heavily on imports of steel and aluminum for military production. He urged companies in other countries to bring production to the U.S.

"There's no tax in the USA so if you don't want to pay the tax, bring your plant to the USA," Trump said. "There's no tax."

As noted by a senior administration official speaking on background earlier March 8, a temporary exemption will be given to Canada and Mexico while the U.S. renegotiates the North American Free Trade Agreement, or NAFTA, with the two countries. The three countries just concluded the seventh round of talks for the 24-year-old trade deal March 5.

"We're going to hold off the tariff on those two countries to see if we're able to make the deal on NAFTA," Trump said, without specifying a time frame or deadline. "If we do, there won't be any tariffs on Canada and there won't be any tariffs on Mexico. I have a feeling we're gonna make a deal."

Trump followed through with the tariffs he first proposed March 1, despite push-back and opposition from many within the Republican party, as well as from global trading partners and U.S. industries that could be targeted by retaliatory tariff measures. The European Union has threatened retaliatory tariffs of 25% against several U.S. exports, including peanut butter, cranberries, shirts, Levi Strauss & Co. jeans and Harley-Davidson Inc. motorcycles.

The president said that U.S. Trade Representative Robert Lighthizer will conduct talks with individual countries hoping to be removed from the tariff list, saying that he is showing "great flexibility and cooperation" toward those countries that are "friends of ours" on trade.

"America will remain open to modifying or removing the tariffs for individual nations as long as we can agree on a way to ensure that their product no longer threatens our security," Trump said.

The proclamations drew immediate concern from Republicans and the retail industry.

“Simply put: This is a tax hike on American manufacturers, workers and consumers. Slapping aluminum and steel imports with tariffs of this magnitude is misguided," Senate Finance Committee Chairman Orrin Hatch, R-Utah, said in a statement. "We share a common goal of making trade work for all Americans and it’s unfortunate that this decision will have harmful implications for American businesses, workers and consumers who rely on these products."

The National Retail Federation said the tariffs will raise the cost of certain types of consumer products and could offset benefits of Republican-passed tax reform.

"Consumers are just beginning to see more money in their paychecks following tax reform, but those gains will soon be offset by higher prices for products ranging from canned goods to cars to electronics," NRF President and CEO Matthew Shay said in a statement. "The retail industry is extremely concerned by the administration’s apparent desire to ignite a trade war, where the net losers will be the very people the president wants to help."

The U.S. Fashion Industry Association also voiced concern, warning in a statement that the tariffs will be "catastrophic for the U.S. economy and jobs."

Trump, however, said the tariffs would bring back jobs and production to U.S. steel and aluminum mills. He hinted at introducing a reciprocal tax aimed at mirror taxes on imports and exports between the U.S. and trading partners.

"I think companies are going to be very happy in the end," Trump said. "Many of the countries who treat us the worst on trade and military are our allies. We just want fairness."