Aluminum and steel are key to many manufacturing, agricultural, and mining sectors ranging from automotive and aviation to energy. Infrastructure projects also heavily rely on these metals. They are integral to the entire US manufacturing supply chain, and a 25% tariff is likely to cause significant price increases for US manufacturers and, therefore, consumers (some are already being observed). In addition, other countries have retaliated. If lasting solutions are not reached and additional retaliatory tariffs are enacted, it could further escalate the economic harms and accelerate a global trade war.

Clearly, imposing substantial tariffs on key inputs to the manufacturing process is costly for all nations involved. It is crucial that agreements on key issues are reached as soon as possible to reduce the effects of sustaining these destructive measures for an extended period.

For more details please refer to the full brief.