President Donald Trump's tariffs could lead to a sharp rise in prices in the United States! It is a double-edged sword: on the one hand, tariffs could hurt other countries, but on the other hand, they could harm the US economy.
According to Reuters, US tariffs on copper and aluminum imports could lead to domestic price increases. If the new White House administration imposes tariffs on these metals, American consumers will face another round of higher prices due to a shortfall of domestic production and the length of time it would take to rebuild the industries.
Daniel Morgan, an analyst at Sydney-based investment bank Barrenjoey, notes that the scale of the new tariff policy is crucial. "Ultimately they generally get paid by the consumer, particularly in the case where there's no domestic substitute," Morgan said, commenting on potential tariffs.
According to the Barrenjoey analyst, restarting closed US aluminum and copper smelters would require new infrastructure and power contracts, which would take time.
However, John Finnell, CEO of the International Copper Association, says the tariffs could have a positive effect by accelerating the development of new mines, for example, in Arizona.
Earlier, US President Donald Trump pledged to impose tariffs on semiconductor and pharmaceutical imports, highlighting that nearly 98 chipmakers had moved their operations to Taiwan. The new administration is now focused on bringing these manufacturers back to the United States.
