U.S. steel tariffs spark global concern: Dr. Keyvan Jafari Tehrani warns of economic fallout
The latest 25% tariff imposed by the U.S. government on steel and aluminum imports has sparked significant concerns among global market experts.
The latest 25% tariff imposed by the U.S. government on steel and aluminum imports has sparked significant concerns among global market experts. Dr. Keyvan Jafari Tehrani, a senior global market analyst, said in an interview with Jahan-e-Sanat, “This decision contradicts previous policies as the exemptions previously granted to Canada and Mexico have been removed. “This decision cancels the previous reprieve that allowed businesses time to adjust,” he stated. “The U.S. aluminum industry lacks self-sufficiency, and these tariffs will inevitably lead to higher costs for end consumers.”
International Backlash and Trade War Risks
The tariffs have triggered strong international reactions, with the European Union calling them “unacceptable” and Mexico preparing retaliatory measures. Experts warn that these tensions could lead to a trade war, disrupt supply chains, and increase market volatility.
The decision also coincides with a high-profile development in the U.S. steel industry. Recently, the acquisition of U.S. Steel by Japan’s Nippon Steel was blocked, with Japan instead agreeing to invest in the U.S. steel sector. “This was clearly a move dictated by Trump,” Dr. Jafari Tehrani remarked. “A similar situation occurred in 2007 when Tata Steel acquired Corus, eventually dominating the UK’s steel industry. Trump likely wants to prevent Nippon Steel from gaining a similar foothold in the U.S.”
Stock Market Reactions and Economic Consequences
Following the announcement, U.S. Steel’s stock value dropped, highlighting concerns over the company’s financial struggles. Analysts believe the blocked acquisition could have helped rescue the company from difficulties, but Trump’s intervention suggests a strategic effort to curb foreign influence in the U.S. steel sector.
The aluminum industry is also expected to face similar challenges. “This decision was made hastily, and there’s a high chance that Trump will eventually reconsider,” Dr. Jafari Tehrani noted. “However, in the short term, consumers will bear the costs, as seen in other markets where sudden price surges follow major policy shifts.”
Global Steel Market and Future Price Hikes
The global steel and aluminum industries will struggle to compensate for supply shortages, making price hikes inevitable. Given that steel remains a critical industry for at least the next 50 years, decisions on export and import tariffs will have far-reaching consequences beyond U.S. borders.
“Unexpected price surges in aluminum on the London Metal Exchange are likely,” Dr. Jafari Tehrani predicted. “As for the Shanghai Metal Exchange, it’s still too early to determine the impact, as much will depend on China’s trade policies.”
Europe’s Limited Ability to Respond
Despite widespread opposition, European steel producers may be unable to challenge these tariffs effectively. Major firms such as ThyssenKrupp and ArcelorMittal have already announced workforce reductions and plant closures by 2030, revealing the fragility of Europe’s steel industry.
Who Pays the Price?
Ultimately, the biggest burden falls on American consumers. Higher steel and aluminum costs will lead to increased product prices, impacting industries that rely on these metals as raw materials.
“This policy may seem like a step to protect U.S. manufacturers,” Dr. Jafari Tehrani concluded, “but in reality, it places a heavy financial burden on American businesses and households.”
Source: steelradar