Trump’s U-turn in tariff policy (U-turn)
According to reports by the Financial Times, the Trump administration is considering a plan to reduce or eliminate some of the heavy 50% tariffs on steel and aluminum that were imposed last year (2025).
Key drivers behind this decision:
• Purpose of the review: To ease inflationary pressure on end consumers and domestic manufacturers (such as automakers and home appliance producers) who have faced rising costs due to high raw material prices.
• Focus on specific goods: Rather than implementing a blanket removal, the administration intends to make the list of covered products more “targeted” and “refined.” For example, items that are not produced domestically in the U.S., or whose domestic output does not meet demand, may be removed from the tariff list.
• Replacement with “targeted investigations”: Instead of broad-based tariffs, the focus will shift to specific security investigations into sensitive products to prevent risks to national security.
Why did Trump change his policy?
1. Pressure from domestic industries : Industries such as automotive manufacturing, wind turbine production, and home appliance manufacturing have been heavily affected by rising steel prices. The prices of items such as canned goods and kitchen appliances in the United States have increased significantly.
2. Implementation complexity : Government officials have stated that monitoring and enforcing a 50% tariff on hundreds of product categories is highly complex and difficult.
3. Trade agreements : This move could pave the way for finalizing trade agreements with the European Union (EU), which had previously warned that it would take retaliatory measures if tariffs were not reduced back to the 15% level.
4. Reducing inflation : According to January 2026 data showing inflation declining to 2.4%, the administration aims to reinforce this downward trend by reducing tariffs on raw materials.
Market Reactions
Immediately after the release of this report on Friday, February 13:
• Aluminum prices declined in global markets.
• Shares of major U.S. steelmakers (such as US Steel and Nucor) fell, as investors worried about reduced profitability in a more competitive environment.
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