Today we are fortunate to present a guest post written by Maria Grazia Attinasi, Lucas Boeckelmann, Rinalds Gerinovics, and Baptiste Meunier (all ECB). This column reflects the opinions of the authors and not necessarily those of the European Central Bank. 

The US administration has recently moved to fully reinstate a 25% tariff on imports of steel and to increase to 25% the tariff on imports of aluminium, both measures will be effective from 12 March 2025. Tariffs on steel (25%) and aluminium (10%) were first imposed during the first Trump Presidency, but exemptions were granted to several countries. The new provisions aim to terminate all approved exemptions, while extending the scope of the tariffs to derivative products made of steel and aluminium. Using the Baqaee and Farhi (2024) model and a novel methodology to disentangle specific goods in input-output tables (Conteduca et al., 2025), this column assesses the long-term

Keep reading this article on Econbrowser Blog - James Hamilton & Menzie Chinn.

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