U.S. President Donald Trump has signed tariffs on steel and aluminium imports to the U.S.
According to a reportby hydrocarbons21.com, the trade tariffs–25 percent on steel and 10 percent on aluminium–are expected to raise prices on the HVAC&R industry.
The report also states that the Air-Conditioning, Heating and Refrigeration Institute (AHRI), in conjunction with 25 other trade associations, sent a letter to President Trump, Commerce Secretary Wilbur Ross, and U.S. Trade Representative Robert Lighthizer, stating it doesn’t support the tariffs due to the impacts they will have on HVAC&R manufacturers and consumers.
The negative reaction to the tariffs hasn’t been limited to the U.S., President of the European Commission, Jean-Claude Juncker, stated in the report that the EU will react firmly and described the tariffs as unfair.
“We will not sit idly while our industry is hit with unfair measures that put thousands of European jobs at risk….the EU will react firmly and commensurately to defend our interests.”
According to hydrocarbons21.com, the EU will be holding talks on the tariffs during their March summit in Brussels, in two weeks.
In regards to Australia, President Trump singled out Australia as an “ally” that may not face the tariffs, however there is no deal to exempt Australia from them and there has been frantic lobbying by officials and business leaders for exemptions this week, according to a report by News.com.au. The report also stated that business leaders and even golfing great, Greg Norman, signed a letter, sent by the American Australian Business Council arguing for an exemption.
Trump’s decision to sign the tariffs comes just after 11 Pacific Rim countries (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam) signed a free trade agreement to streamline trade and slash tariffs.
Australia exports an estimated $274 million worth of steel and $276 million of aluminium to the U.S.
The new tariffs will take effect in 15 days.
How do you think the U.S. steel and aluminium import tariffs will affect the HVAC&R industry? Feel free to login and comment below.