The Trump administration recently announced that the U.S. would impose tariffs on imported steel (25%) and aluminum (10%) as a way to incentivize U.S. companies to buy the metals from U.S. producers rather than foreign companies.
It’s a recent move, and difficult to predict what might happen in the future, but folks at the Washington Post speculate about impending trade wars and the impact this could have on jobs, increased costs to consumers, and potential retaliation from other countries.
Morningstar’s Rekenthaler Report looks back at history and compares the move to arguments made by Alexander Hamilton.
The global market has reacted negatively with stocks plummeting. The Dow dropped more than 400 points following Trump’s announcement and continued to fall the following day.