Trump says no exemptions on steel, aluminum tariffs

Speaking to reporters aboard Air Force One late Sunday, Trump said 25% tariffs on all steel and aluminum imported into the U.S., which went into effect last week, are here to stay. He added that reciprocal and sectorial tariffs will kick in on April 2, which he referred to as a “liberating day.”

“They charge us, and we charge them,” he said, referring to the reciprocal tariffs. “Then, in addition to that, on autos, on steel, on aluminum, we’re going to have some additional tariffs.”

Trump raised tariffs on imports of steel and aluminum to a flat 25%, without exemptions or exceptions, in a move that was designed to help U.S. industry while contributing to an escalating trade war.

After these tariffs were imposed, Canada and the European Union retaliated with countermeasures on U.S. exports. Mexican President Claudia Sheinbaum said Wednesday her government will wait for a possible resolution in coming weeks before deciding on retaliation.

The back-and-forth has sparked uncertainty that has driven U.S. stocks lower last week and fueled fears of a recession.

Here’s how tariffs would make products more expensive

Tariffs will be a big part of the Trump administration’s trade policy. So, what are they and how do they work?

A tariff is a form of tax imposed on imports from another country.

Economists generally agree that trade barriers raise consumer prices and negatively impact economic output and income, according to the Tax Foundation, a nonpartisan tax policy nonprofit.

Tariffs create more demand for domestic manufacturers, but those companies are also part of the global supply chain and therefore also impacted by tariffs, experts have previously explained to USA TODAY.

Trump’s motivation for implementing tariffs is to get help from China, Canada and Mexico to curb the flow of migrants and illegal drugs into the U.S. The president has insisted that the countries have not done enough to help address what he sees as core issues for his administration.

– Kinsey Crowley and Jonathan Limehouse

Trump won’t say whether he thinks his sweeping tariff plan could help push the country into a recession. But the threat of tariffs and the-already rising costs of everyday items are raising concerns about where the economy is headed.

A recession could happen if more people are out of work, large companies see lower profits, the stock market slips and home prices tumble, according to the International Monetary Fund.

Generally, a recession is marked by an extended period of many months or more of economic downturn. And even when a recession is acknowledged by experts and officials, not everyone agrees on when it started or when it ends.

− Damon C. Williams, Zachary Schermele

Contributing: Reuters