U.S. The United States “can’t fight a war” without domestic production of steel and aluminum, Commerce Secretary Howard Lutnick claimed on Wednesday in support of the doubling of tariffs. During testimony in front of the United States, Lutnick made the remarks while denying the immediate real-world effects that steep tariffs will have on U.S. manufacturing. appropriations committee of the Senate that primarily dealt with U.S. President Donald Trump’s tariff policy.
“The big issue is, you can’t fight a war without steel and aluminum production in America,” Lutnick said during an exchange with Democratic U.S. Sen. Jeanne Shaheen of New Hampshire, who was asking if he or Trump consulted with the Pentagon before raising those tariffs.
“If you don’t have the ability to make your own steel and aluminum, you can’t fight a war, and that is what the president’s doing. He’s trying to make sure that we make sufficient steel and aluminum to protect our defence.”
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“Which I certainly support,” Shaheen said, to which Lutnick replied, “Sounds like we exactly agree.”
Shaheen responded, “But I don’t agree on the way it’s been done because we won’t have the steel we need to provide the supplies we need right away.” So we need to do a little better planning before we put in place those kinds of tariffs.”
Trump signed an executive order Tuesday that raised tariffs on steel and aluminum imports from the 25 per cent rate first imposed in March to 50 per cent, effective Wednesday.
Click to play video: ‘Why is Trump doubling steel and aluminum tariffs?’
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Why is Trump doubling steel and aluminum tariffs?
In her exchange with Lutnick, Shaheen highlighted concerns from a ball bearing manufacturer in her state that supplies the U.S. aerospace industry.
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While she didn’t name the company, she said it has only one domestic steel supplier, with the rest of its materials sourced from Canada and the Indo-Pacific.
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She stated, “Those (foreign suppliers) have been eliminated under the tariffs,” adding that the business is experiencing rising costs and production lead times of two and a half years, up from 20 weeks. “What was the determination about how you address those kinds of extended lead times for companies that are producing equipment that’s critical to our national security?” She inquired. “It’s really a cost issue, not an access issue,” Lutnick replied.
Shaheen stated, “Not according to this company in New Hampshire.” “It’s an access issue for them.”
“Well, that would be illogical since it’s just a tariff, which is monetary,” Lutnick said. “It is not a punishment. It’s only a financial one.” Canadian producers of steel and aluminum, in addition to other industries like automakers that are impacted by Trump’s various tariff regimes, have claimed that higher prices for their goods have resulted in the cancellation of contracts with the United States. Click to play video: ‘Canada ponders response to Trump’s latest steel tariffs threat’
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Canada ponders response to Trump’s latest steel tariffs threat
The Canadian Steel Producers Association has said the newly-increased tariffs are “creating chaos and disruption throughout North American supply chains and delivering a crushing blow to the Canadian steel industry.”
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“At a 25 per cent tariff rate, we saw significant layoffs, curtailed investments and a significant drop of shipments to the United States,” president and CEO Catherine Cobden said in a statement Wednesday.
“At a 50 per cent tariff rate, the U.S. market is effectively closed to Canadian steel, leaving billions of dollars of Canadian steel without a market.”
Trump and Lutnick have said tariffs on countries and industries are meant to drive manufacturing back to the U.S. by raising the cost of foreign goods.The tariffs on steel and aluminum specifically were imposed under national security concerns. Trump administration officials have focused particularly on China, warning Beijing could cut off supplies if the trade war escalates or in the event armed conflict breaks out.
According to an interview that he gave to ABC News on Sunday, White House economic advisor Kevin Hassett, China is “dumping” cheap steel products into the United States and other nations “because it prepares them to win a war, because they’re the only ones who can make steel.” “If we have cannons but not cannonballs, then we can’t fight a war,” Hassett said. “We have to have a steel industry that’s ready for American defence.”
U.S. defence and aerospace manufacturers have relied on Canadian steel and aluminum for decades — including in wartime.Canada supplied raw materials, components and fully built military vehicles and equipment to the U.S. during the Second World War, helping to bolster American military forces. It did the same thing for American troops in the Korean, Vietnam, and Middle East wars as it did for British troops and other allies. Steel and aluminum from Canada are still used to construct American aircraft, missiles, space technologies, and other equipment. In an effort to shield these industries from Trump’s tariffs and move away from reliance on the United States, the government of Canada has pledged to use Canadian-made steel and aluminum to support its own domestic defense industry. Defence Minister David McGuinty told a conference of defence contractors last week that the government’s goals for boosting the Canadian sector will match the speed at which production ramped up during the Second World War.
Lutnick on Wednesday continued to insist that higher tariffs and related costs are a separate issue from supply, and even offered to explain “how steel works” to Shaheen after the public testimony.
“The company that I’ve been talking to in New Hampshire understands how it works,” Shaheen responded, “and they have a problem. They don’t need you to explain it to them. They know because they’ve been in business for years.”
U.S. ‘can’t fight a war’ without American steel, Trump tariff chief says
