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U.S. President Donald Trump\u2019s increased steel and aluminum tariffs<\/a> went into effect on Wednesday. At 50 percent, they\u2019re double the 25 percent duties that were first imposed in March. \u201cIn my judgment, the increased tariffs will more effectively counter foreign countries that continue to offload low-priced, excess steel and aluminum in the United States,\u201d Trump said<\/a> on Tuesday.<\/p>\n However, economists warn that such increases will raise prices for consumers and significantly lower U.S. economic output. According to a new Congressional Budget Office report published<\/a> on Wednesday, U.S. tariff increases in place before May 13 are expected to reduce the federal deficit by $2.8 trillion, after adjusting for growth and investment.<\/p>\n<\/p><\/div>\n U.S. President Donald Trump\u2019s increased steel and aluminum tariffs<\/a> went into effect on Wednesday. At 50 percent, they\u2019re double the 25 percent duties that were first imposed in March. \u201cIn my judgment, the increased tariffs will more effectively counter foreign countries that continue to offload low-priced, excess steel and aluminum in the United States,\u201d Trump said<\/a> on Tuesday.<\/p>\n However, economists warn that such increases will raise prices for consumers and significantly lower U.S. economic output. According to a new Congressional Budget Office report published<\/a> on Wednesday, U.S. tariff increases in place before May 13 are expected to reduce the federal deficit by $2.8 trillion, after adjusting for growth and investment.<\/p>\n Regarding tariffs on metals specifically, steel prices have climbed 16 percent<\/a> since Trump took office in January, according to the U.S. Producer Price Index. The U.S. Commerce Department calculated that the cost of steel in the United States is around $984 per metric ton, which is much higher than steel in Europe (at $690) or in China (at $392).<\/p>\n Trump\u2019s decision to double steel and aluminum duties will affect most U.S. trading partners, but the United Kingdom remains an exception. U.S. levies on British metals will remain at 25 percent, according to the White House, though that rate could go up starting on July 9 if Washington believes that London has not held up its end of the new trade deal<\/a> that the two reached last month.<\/p>\n British Prime Minister Keir Starmer expressed confidence<\/a> on Wednesday that the United Kingdom will become entirely exempt from the U.S. metals tariffs before the July 9 deadline. \u201cWe are the only country in the world that isn\u2019t paying the 50 percent tax on steel, and that will be coming down,\u201d Starmer told British lawmakers.<\/p>\n Read more in today\u2019s World Brief: Trump Doubles Steel and Aluminum Tariffs to 50 Percent<\/strong><\/a>.<\/p>\n<\/p><\/div>\n This post is part of FP\u2019s ongoing coverage of the Trump administration<\/i>. <\/i>Follow along here<\/a>.<\/em><\/p>\n<\/p><\/div>\n<\/p><\/div>\n