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Yahoo
09-06-2025
- Business
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PETER NAVARRO: Trump's 50% steel tariff is a necessary shield for American industry
President Donald Trump has now raised steel tariffs to 50% from 25%. This increase is absolutely essential to protecting the U.S. steel industry and America's national security. This decision comes not a moment too soon. As global steel overcapacity reaches dangerous new heights and import surges hammer American producers, the original 25% tariffs under Section 232 are no longer sufficient to shield our industrial base from foreign market manipulation, particularly by Chinese state-linked exporters. A stronger line must be drawn – and today's move draws it. When President Trump first imposed Section 232 tariffs in 2018, they immediately spurred a resurgence in domestic steel investment. American steelmakers poured more than $20 billion into expanding and modernizing production across critical product lines – from hot-rolled sheet and corrosion-resistant plate to rebar and wire rod. These investments weren't speculative; they were foundational to national resilience, designed to restore domestic self-sufficiency and economic security. Trump's Tariff Strategy Can Work But America Still Needs Deeper Economic Reform By 2024, those investments had paid off. U.S. steel capacity now exceeds domestic consumption by more than 19 million tons annually. In product after product, America can meet its own needs without relying on a single ton of imports. For instance, U.S. hot-rolled sheet capacity exceeds demand by 18.1 million tons. Cold-rolled sheet? Overcapacity of 13.2 million tons. Rebar? An excess of 1.5 million tons. Read On The Fox Business App In short, American steel is fully capable of standing on its own – if foreign trade abuses don't undermine it. Yet that is exactly what's happening. Global steel overcapacity – fueled by China's relentless export machine – has surged to a staggering 600 million metric tons in 2024 and is projected to exceed 720 million metric tons by 2027. China alone exported nearly 111 million metric tons last year, destabilizing global prices. Trump Risks It All, Takes On The World With Tariffs And Puts America First This massive Chinese dumping – what else is new from the world's largest dumper of manufactured goods – has forced steelmakers in countries like Korea, Japan, Vietnam and the UAE to aggressively chase U.S. market share. No strangers to dumping themselves, these foreign producers have brazenly told American customers they will simply "price through" the existing 25% duties – absorbing the costs to undercut U.S. mills. The result has been a flood of imports across multiple product lines. In the first part of 2025 alone, standard pipe imports from Vietnam surged 160% compared to the same period in 2024. Oil country tubular goods imports jumped 223% from Vietnam, 70% from Korea and 44% from Taiwan. Rebar imports from Vietnam doubled. Wire rod from Korea soared 67%. These are not normal market fluctuations; they are coordinated assaults on America's steel backbone. Compounding the problem, some foreign suppliers are now using fraud – falsifying invoice values to reduce tariff exposure. Doubling the tariff to 50% makes such schemes far less profitable and far easier to detect and deter. The fallout is already visible. U.S. steel industry capacity utilization has dropped to unsustainable levels – falling from 81.2% in 2021 to 75.2% in 2025. Financially, the picture is even more dire. The four largest U.S. steelmakers saw their average net income ratio plummet from 14.9% in 2022 to a loss of 1.9% in the fourth quarter of 2024 (see below). The Census Bureau now ranks the steel sector among the worst-performing industries in the country. Without swift action, this trajectory threatens to undo the progress made under President Trump's original Section 232 proclamation. But with President Trump's decisive move to raise tariffs to 50%, America is sending a clear message: We will not surrender our industrial core to foreign manipulation and overcapacity. We will not allow imported steel, dumped at below-market prices or snuck in through fraud, to destroy the viability of U.S. mills. Click Here To Read More On Fox Business The stakes are not just economic – they are strategic. Economic security is national security and steel is the bedrock of national defense, critical infrastructure and advanced manufacturing. A strong steel industry means a strong America. President Trump's action is bold, timely and absolutely necessary. He is putting American workers, American producers and American security first. Click Here To Read More From Peter NavarroOriginal article source: PETER NAVARRO: Trump's 50% steel tariff is a necessary shield for American industry
Yahoo
06-06-2025
- Business
- Yahoo
Mortgage rates drop for first time in weeks, still hover near 7%
Mortgage rates declined for the first time in weeks, though they are still hovering near 7%, mortgage buyer Freddie Mac said Thursday. Freddie Mac's latest Primary Mortgage Market Survey, released Thursday, showed that the average rate on the benchmark 30-year fixed mortgage fell to 6.85% from last week's reading of 6.89%. The average rate on a 30-year loan was 6.99% a year ago. When Leaving The House To Your Heirs Backfires "The average mortgage rate decreased this week, which is welcome news to potential homebuyers who also are seeing inventory improve and house price growth slow," said Sam Khater, Freddie Mac's chief economist. These States Were The Housing Market Mvps, According To Read On The Fox Business App The average rate on the 15-year fixed mortgage slipped to 5.99% from last week's reading of 6.03%. One year ago, the rate on the 15-year fixed note averaged 6.29%.Original article source: Mortgage rates drop for first time in weeks, still hover near 7% Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-06-2025
- Business
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Trump's 50% tariffs on imported steel, aluminum take effect
U.S. President Donald Trump's 50% tariffs on most imported steel and aluminum went into effect on Wednesday, the same day as his deadline for trading partners to give their "best offer" in bids to avoid import tax rates on other goods from taking effect next month. Late on Tuesday, Trump signed an executive proclamation to implement, starting Wednesday, his announcement last week to increase tariffs on steel and aluminum imports that had been in place since March from 25% to 50%. The new tax went into effect at 12:01 a.m. "We started at 25 and then after studying the data more, realized that it was a big help, but more help is needed. And so that is why the 50 is starting tomorrow," White House economic adviser Kevin Hassett said at a steel industry conference on Tuesday. The increase applies to nearly all trading partners, with Britain the only exception, since it is the only country so far that has reached a preliminary trade agreement with the U.S. during a 90-day pause on a wider array of U.S. tariffs. Steel and aluminum imports from the U.K. will continue to be taxed at 25% until at least July 9. Trump Admin Seeks Countries' Best Offers Ahead Of Tariff Deadline About a quarter of all steel used in the U.S. is imported, and the increased tariffs will hit strong U.S. trading partners Canada and Mexico particularly hard, Census Bureau data shows. The two U.S. neighbors rank number one and three, respectively, in steel shipment volumes to the U.S. Read On The Fox Business App Canada is even more impacted by the aluminum duties as the top exporter to the U.S. by far at roughly twice the rest of the top 10 exporters' volumes combined. Prime Minister Mark Carney's office said Canada was "engaged in intensive and live negotiations to have these and other tariffs removed." Mexican Economy Minister Marcelo Ebrard emphasized that the tariffs were unsustainable and unfair, especially given that Mexico imports more steel from the U.S. than it exports to the country. "It makes no sense for the United States to levy a tariff on a product in which you have a surplus," he said, adding that Mexico would seek an exemption from the increase. The U.S. receives about half of its aluminum from foreign sources. Us Economic Growth Forecast Cut Sharply Due To Higher Tariffs The tariff increase shook the market for steel and aluminum this week, but particularly for aluminum, which has seen price premiums more than double so far this year. With little current capacity to boost domestic production, import volumes are likely to remain steady unless the price increases undercut demand. The White House also wants trading partners to submit their proposals on Wednesday for deals that might help them avoid Trump's "Liberation Day" tariffs from taking effect next month. Officials have been in active talks with several countries since Trump announced a pause on those tariffs, but the deal with Britain is the only one reached so far. But even that agreement is more of a preliminary framework for more talks. The Trump administration is now eager to reach more deals, with just five weeks until the tariffs take effect. The U.S. Trade Representative has sent letters asking countries to list their best proposals in a number of key areas, including tariff and quota offers for the purchase of U.S. industrial and agricultural products and plans to resolve any non-tariff barriers. Click Here To Read More On Fox Business Other requested items include any commitments on digital trade and economic security, along with country-specific commitments, according to the letter. Japan, a major U.S. trading partner, has not received the letter, government spokesperson Yoshimasa Hayashi said at a press conference. "Regarding U.S. tariff measures, negotiations are underway between Japan and the United States," Hayashi said. "The government will keep on tackling them, doing our utmost and giving them a top priority." Reuters contributed to this article source: Trump's 50% tariffs on imported steel, aluminum take effect Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-06-2025
- Business
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More Americans turn to home cooking as economic concerns weigh
More Americans are cooking at home as growing economic concerns are forcing households to cut back, according to Campbell's CEO Mick Beekhuizen. Beekhuizen told analysts during the company's third-quarter earnings call on Monday that consumer sentiment continued to soften throughout the quarter, with shoppers becoming even more deliberate about how they were spending money on food. "A key outcome is a growing preference for home-cooked meals, leading to the highest levels of meals prepared at home since early 2020," Beekhuizen said. Buy Now, Pay Later Usage For Groceries Nearly Doubles As Consumers Struggle With Food Costs He also noted that consumers are also "favoring ingredients that help stretch tighter food budgets." The trend helped boost the company's meals and beverages business, especially its line of condensed cooking soups, broth and Italian sauces. However, shoppers were increasingly intentional about their discretionary snack purchases, which created additional headwinds in its snacking categories. Read On The Fox Business App From 2020 to 2024, the all-food consumer price index rose 23.6%, outpacing the entire index, which grew 21.2% over the same period. Though food price growth slowed in 2023 and 2024 because wholesale food prices and these other inflationary factors eased across industries, some experts fear President Donald Trump's tariffs could increase food prices again. Shake Shack Jumps Into Loyalty Game With $1 Sodas Amid Economic Uncertainty While inflation remains consumers' top concern, tariffs have quickly risen to second place, according to consulting firm McKinsey, which conducted a survey in May to understand how tariffs are shaping consumer concerns and behaviors. Nearly 50% of U.S. consumers surveyed reported rising prices as their top concern, followed by tariff policies at 29%, according to the report. Despite the ongoing trade talks, the uncertainty and volatility that still persists in the market are already forcing most of the survey respondents to "explore a range of personal financial behaviors to protect their pocketbooks," the firm said. If they haven't done so already, they plan to soon, even if the tariffs' effects have yet to hit store shelves, according to article source: More Americans turn to home cooking as economic concerns weigh Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-06-2025
- Business
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US economic growth forecast cut sharply due to higher tariffs
The outlook for economic growth in the U.S. was slashed due to higher tariffs in a new report released by the Organisation for Economic Co-operation and Development (OECD) on Tuesday. The OECD's forecast cut U.S. economic growth to 1.6% in 2025 and 1.5% in 2026, well below the 2.8% growth in gross domestic product (GDP) that was recorded last year. The group attributed the slower growth forecast to the "substantial increase in the effective tariff rate on imports and retaliation from some trading partners, high economic policy uncertainty, a significant slowdown in net immigration, and a sizeable reduction in the federal workforce." It also projected that annual headline inflation will rise to 3.9% by the end of 2025 because of higher import prices stemming from tariff increases, before easing next year amid moderate GDP growth and higher levels of unemployment. Trump Admin Seeks Countries' Best Offers Ahead Of Tariff Deadline "Risks to the growth projection are skewed to the downside, including a more substantial slowing of economic activity in the face of policy uncertainty, greater-than-expected upward pressure on prices from tariff increases, and large financial market corrections," the OECD wrote. Read On The Fox Business App "There has been a significant shift in U.S. trade policy since February through a wide range of announcements regarding new tariffs and other trade restrictions, some of which have been reversed, delayed or modified, together with retaliation by some trading partners," the report said. China Accuses Us Of Undermining Trade Agreement In the forecast, President Donald Trump's tariffs that were in effect in mid-May would remain in place through the rest of 2025 and into 2026. The OECD noted the effective tariff rate on Chinese imports is up about 30%, while the tariff rate on other trading partners is up about 10%, on average. "This represents an unprecedented increase in the average effective tariff rate, raising it from about 2.5% to above 15%, the highest since World War II," the OECD wrote. "While the new tariffs may increase incentives to produce in the United States, higher import prices will reduce real incomes for consumers and raise the price of imported intermediate goods. Tariffs and policy uncertainty disrupt value chains and negatively affect investment." House Reconciliation Bill Would Increase Budget Deficits By $2.3 Trillion Over A Decade: Cbo The forecast said that the Federal Reserve will be able to ease monetary policy and lower interest rates once inflation abates, as long as inflation expectations are well-anchored. It also noted that the federal government will need to rein in budget deficits, which are expected to grow larger in the years ahead, writing that a "significant fiscal adjustment will be required over several years." Deficits are expected to rise from about 7.5% of U.S. GDP in 2024 to over 8% in 2026, with the public debt-to-GDP ratio topping 100% by the end of 2026. "New tariff revenues and spending cuts resulting from the shrinking of the federal workforce will be deficit-reducing," though the OECD noted that "these effects will be more than offset by a slowing in revenue growth from weaker economic activity, as well as the expected enactment of a fiscal package for fiscal year 2026." That package would extend the expiring provisions of the 2017 Tax Cuts and Jobs Act, as well as cutting other personal and corporate taxes, boosting spending on defense and border security, while making spending cuts to Medicaid. The OECD said that the package "is responsible for most of the projected 0.6 percentage point of GDP rise in the deficit in 2026."Original article source: US economic growth forecast cut sharply due to higher tariffs Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
