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Steeling for Tariffs; America's Arctic Ambitions in the Deep Freeze By Paul Berger

Foreign companies thinking they can duck out of President Trump's 25% tariffs on steel and aluminum should think again.

The new levies to take effect March 4 will apply to every country supplying the metals, including allies such as Canada, Mexico and Japan, and aren't likely to be paused like other recent tariffs on Canada and Mexico.

That's because the tariffs are examples of structural, long-term duties that Trump is wielding to address what he views as unfair trade policies such as subsidies that governments-particularly China-provide for their own steel companies, write the WSJ's Gavin Bade and Alex Leary.

The levies on steel and aluminum are in contrast to the tariffs targeting nontrade issues such as immigration and drug smuggling that were threatened against Canada, Mexico and China. If trading partners acquiesce to those U.S. demands, as Canada and Mexico did, recent experience shows they can buy themselves more time.

The latest tariff move will please American steel producers, but it will be opposed by domestic manufacturers who say the duties will increase costs. Trump is also expected to impose so-called "reciprocal" tariffs this week on most trading partners, aiming to match tariff levels imposed by foreign nations.

Trade and tariff uncertainty is slowing corporate dealmaking . (WSJ) CONTENT FROM: PENSKE LOGISTICS Gain a Closer Look. Gain Ground with Penske Logistics.

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America's lack of shipbuilding capacity is putting its Arctic ambitions into a deep freeze. Vessels known as icebreakers are becoming an essential tool to open trade routes, allow resource extraction and project military power in the intensifying global race to access the Arctic. The WSJ's Alistair MacDonald and Georgi Kantchev write that the U.S. has only one icebreaker that operates year-round, and it was built nearly 50 years ago . Russia, meanwhile, has around 40 icebreakers capable of operating in polar conditions, and China has four.

President Trump has signaled that he wants to put the Arctic back at the top of the U.S.'s priority list, and that he wants to order 40 new icebreakers. But the lack of commercial shipbuilding in the country means there are few established domestic supply chains for naval vessels, which are routinely built late and over budget in shipyards suffering from recruitment shortages, high costs and a lack of investment.

Number of the Day In Other News

The European Union intends to retaliate against U.S. tariffs on steel and aluminum. (WSJ)

Senior U.S. officials are in Europe this week to discuss trade and other tensions . (WSJ)

European natural-gas prices hit a two-year high as stronger fuel demand due to colder temperatures risks draining low inventories. (WSJ)

Businesses that serve Latino communities are seeing a sharp drop in consumer spending since Donald Trump took office. (WSJ)

BYD, China's biggest automaker, is widening its lead over Tesla in artificial-intelligence-powered driving technology for Chinese car buyers. (WSJ)

McDonald's U.S. store sales and earnings fell in the three months through December as the chain dealt with the fallout of an E. coli outbreak. (WSJ)

Finnish telecommunications company Nokia appointed Justin Hotard, a tech industry expert in data centers and AI , as its next CEO. (WSJ)

China's busiest port at Shanghai processed a record 5 million containers , measured in 20-foot equivalent units, in January. (Bloomberg)

Rivian is broadening sales of its electric van beyond Amazon and offering the vehicles to commercial fleets . (The Verge)

Amazon is facing its second workers' union vote in as many months at a warehouse in North Carolina. (Reuters)

China-founded online marketplace Shein has abandoned plans to open a U.K. warehouse as doubts mount over its planned London IPO. (The Daily Telegraph)

Auto hauler Jack Cooper is winding down operations after losing contracts with key customers Ford Motor and General Motors. (Detroit Free Press)

About Us

Follow the WSJ Logistics Report team: @bylizyoung and @pdberger . Follow the WSJ Logistics Report on X at @WSJLogistics .

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

February 11, 2025 07:04 ET (12:04 GMT)

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