During the statements made to the press during a weekly signing of the executive ordinance, the President of the United States (USA) Donald Trump added further tariff comments, although not necessarily clarity, to his social media posts earlier on Friday.
Donald Trump continued comments on the possible “transaction” between the American Stal and the Japanese Nippon Steel. One of the key details of the omission in the NIPPON-US steel agreement is that this is an acquisition offer, not a company or investment agreement. If the contract is able to pass, American Stal will become a subsidiary entirely belonging to Nippon Steel. While Nippon Steel agreed to spend USD 4 billion on the construction of an additional refinery, most of the money takes the shape of a redemption of an existing American company.
Key attractions
We are talking about huge plants. The technician has gone through a long way in the field of safety and costs.
We need huge electricity.
Talks with the EU are sluggish.
(In the case of its recent 50% tariff threat to the EU): I am not looking for a contract, it is 50%.
I could talk about EU tariff delays if they start moving plants to the USA.
We have many other offers ready to sign.
(On its proposed 25% tariff focused on Apple products (AAPL): it will be more, it will also be Samsung.
If Apple and Samsung build a plant in the USA, without a tariff.
Cook said he would go to India, but in this way there will still be tariffs.
If they sell in the US, it should be built in the USA.
I don’t want the consumer to pay tariffs. Tariffs facilitate, not painful.
Some products that the USA do not want to produce are better elsewhere.
US Stal will remain in America.
There will be a partnership between American Stal and Nippon Steel. Most investments will appear in the next 14 months.
Partnership in the USA and Nippon Steel adds $ 14 to the economy.
Tariff rules provide steel steel forever forever.
On May 30 I will gather a steel rally.
Market reaction
Investors barely blinked due to the further lack of clarity of the recent tariff wave of President Trump, selling and recovering through the entire market session on the main commercial headers. Markets are heading to the weekend closed for a three -day weekend, leaving American dollar index (DXY) to sink in the lower end near 99.00.
FAQ tariff
Tariffs are customs duties taken for some imports of goods or product category. The tariffs are designed to facilitate local producers to be more competitive on the market, providing price advantage compared to similar goods that can be imported. The tariffs are widely used as tools of protectionism, along with trade barriers and import amounts.
Although both tariffs and taxes generate government income to finance public goods and services, they have several distinctions. The tariffs are paid at the entrance port and the taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, and the tariffs are paid by importers.
There are two schools of thinking among economists regarding the utilize of tariffs. While some say that tariffs are necessary to protect national industries and solve the problem of commercial imbalance, others perceive them as a harmful tool that can potentially escalate prices in the long-term perspective and lead to a harmful trade war by encouraging Tit-For Tatt tariffs.
During the fall to the presidential election in November 2024, Donald Trump explained that he was going to utilize the tariffs to support the US and American producers. In 2024, Mexico, China and Canada constituted 42% of total US imports. According to the American office of the population, Mexico was distinguished as the best exporter by $ 466.6 billion. That is why Trump wants to focus on these three nations by applying tariffs. It also plans to utilize revenues generated by tariffs to reduce personal income taxes.
