President Donald Trump on Thursday, March 1, announced that his administration planned to impose a 25% tariff on imported steel and a 10% tariff on imported aluminum. His argument was rooted in the notion that other countries' trade practices have undermined U.S. production and could potentially compromise national security at home.
While protectionists and free trade advocates erupted into a fierce debate, the stock market tumbled. The Dow Jones Industrial Average shed 420 points, or 1.68%, on Thursday, the S&P 500 lost 1.33% and the Nasdaq declined 1.27%.
It's important, then, to know how important steel and aluminum are to the U.S. economy.
After all, as much as 55% of a car's total weight comes from steel, according to the World Steel Association. Roughly 50% of steel use goes toward buildings and infrastructure. And about 16% of steel goes toward making mechanical equipment.
