(NBC News) President Trump’s plan to protect American steel and aluminium producers is stoking fears of a trade war.
President Trump announced the plan Wednesday, following through on a campaign pledge to impose those tariffs.
“Twenty-five percent for steel. It will be 10 percent for aluminium. And it will be for a long period of time.” Said Mr. Trump.
Industry leaders say it will grow domestic steel production and add jobs, but it could make things like cars and washing machines more expensive.
That spooked investors Thursday, with the DOW closing down more than 400 points.
“The winners here are steel companies in the United States who sell steel. The losers are any company that buy steel. That means they are going to past those costs on to their customers,” said CNBC’S Eamon Javers.
The U.S. buys more steel than it makes.
“I hope the President doesn’t really do this, because if he does it’s just going to be a huge tax on American citizens,” said Republican Senator Orrin Hatch of Utah.
The new tariffs are expected to be finalized next week, meaning there is still time for the President to change his mind on who they will target, and by how much.
Read more: http://nbcnews.to/2oBtwzs