Trump’s tariff threats create uncertainty for auto aluminium

Among other things, Donald Trump’s presidency is likely to be remembered for its anti-globalisation rhetoric, the strength of which has not been seen in the White House for decades. Since rising to power, the president has delivered on multiple campaign promises, including a withdrawal from the Trans-Pacific Partnership (TPP) and a drive to re-negotiate the North America Free Trade Agreement (NAFTA) with bordering nations Mexico and Canada.

But when it comes to the finer details, the Trump-era might be better remembered for its sheer uncertainty. The now-infamous tariffs on steel and aluminium imports (25% and 10% respectively) were first introduced in March 2018, under Section 232 of a 1962 US law allowing safeguards for the purpose of national security. This meant the tariff would apply to all countries, but exemptions were quickly introduced for major trading partners including Canada, Mexico and the European Union (EU).