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Despite a 20% pullback in recent weeks, random-length lumber futures are still up more than 400% from their April 2020 low. Lumber prices have skyrocketed so much that it's causing remodeling nightmares and creating even more sticker shock in the booming housing market.

Likewise, prices for US hot-rolled, coil steel, the most widely produced finished steel product, have spiked almost 270% since bottoming out last August and hit a record high of $1,616 per ton on Friday, according to S&P Global Platts. Before this boom, the prior peak was $1,100 in 2008.

Murphy, whose organization opposed the Section 232 steel tariffs from the beginning, argued tariff relief is a way government can help accelerate the recovery while simultaneously easing inflation jitters.

Meanwhile, both the steel and lumber industries are strongly urging Biden to keep the tariffs in place. Removing them could prove to be politically unpopular, especially among steel workers in battleground Rust Belt states.

Scott argued the steel tariffs effectively supported the industry and that removing them, along with quotas limiting imports, would lead to both a "hemorrhaging of jobs" and importing steel that is in many cases worse for the environment than what is made in America.

The Biden administration does not appear to have made a decision yet on lifting the steel or lumber tariffs, though new efforts are being made to address rising inflation concerns.

Biden announced late last week his administration will soon take unspecified steps to fight supply chain pressures, beginning with construction materials and transportation bottlenecks.

Pittsburgh is home to US Steel, the country’s second-largest producer. Democrats have a chance to grab the 18th district in a special election on Tuesday, in a race in which steelworkers, unions and other groups paying close attention to the tariffs issue could play a pivotal role.

Multiple former steelworkers, though, pointed out that the US steel industry is a long way from being able to meet US demand, no matter how high the president’s barriers to entry.

“Don’t stay there if you go,” said Neff, the author of the entertaining steel memoir Rigger. “You may go to sleep on the eighth floor and wake up on the third floor. We ex-steel hangers call that a Chinese accordion.”

In January 2017, Mr. Obama’s administration launched a case at the WTO against China for subsidizing aluminum

Mr. Trump has failed to follow up. Last week, Mr. Trump invoked a little-used 1962 statute to promise tariffs of 25% on imported steel and 10% on aluminum, ostensibly for national security, a factor that led his chief economic adviser, Gary Cohn, to announce his resignation Tuesday.

Chinese forced technology transfer, commercial espionage and intellectual-property theft, all aimed at creating Chinese champions in key industries by 2025

Yet China exports little steel to the U.S. because of existing duties and accounts for just 11% of its aluminum imports, far behind Canada. The Commerce Department argued for a global remedy because Chinese production depresses global prices and drives foreign producers out of third markets, and they then ship to the U.S.

It noted that since 2003 China has four times promised to address overcapacity in steel production, as its actual capacity quadrupled to roughly half the world total. “The crisis confronting the U.S. aluminum industry is China, plain and simple,” one industry group told the department.

When the EU threatened to retaliate, Mr. Trump said he would escalate by raising duties on European cars.

This means the pain of Mr. Trump’s tariffs will fall not on China but on actors that play by the rules, including Canada, Japan and the European Union.

The U.S. is preparing a sweeping penalty against China, but it would be more effective if done jointly; otherwise, Beijing may simply persuade others to hand over their technology in exchange for Chinese sales or capital.

S., EU and Japan launched a joint WTO complaint against China for restricting exports of “rare earths,” which are vital to many advanced technologies.

In 2014, they won and China lifted its restrictions. One former U.S. trade official says the U.S. could create a similar united front against Chinese takeovers of technology companies: “That would get their attention.” Nor would it violate WTO rules, which are less restrictive on investment than tariffs, he said.

“We are much more likely to get our allies to work with us if we aren’t punishing them for selling us steel that our consumers want to buy.”

He said the jobs added in the metals industry will likely not be permanent. "As you damage the consumers of metal in the United States — the people in the supply chain who purchased the steel and aluminum — in time they would purchase less metals which would lead then to these new created jobs being temporary," Hardy said.

exacerbated by what the tariffs symbolize for Mr. Trump’s agenda and the broader global economy.

By following his nationalist instincts Mr. Trump has broken with the pro-business factions in his administration and his party whose policy priorities have been critical to the upswing in business and investor sentiment since he was elected. By willingly hurting U.S. allies over a problem of overcapacity that is mainly China’s doing, he’s cast further uncertainty over the U.S. role as global leader.

With investors already on edge about Federal Reserve interest rate increases, the steel tariffs at the margin compound inflation pressure. That effect is so far too small to alter the Fed’s calculus, but a tit-for-tat cycle of retaliation could lead to even more inflation and rate increases than investors or the Fed have anticipated.

Protectionism shrinks markets, raises costs, and reduces how fast a country can grow without generating inflation. U.S. steel and aluminum companies can meet the demand previously filled by imports, but with unemployment at a 17-year low that may require hiring workers away from other industries, putting upward pressure on wages.

This is good news in the short run for workers, but bad news for any consumer who must now pay more for cars or beer cans.

nvestors speculated that the angry reaction of American allies, in particular the European Union, showed U.S. global leadership is fading and with it the dollar’s appeal as a reserve currency.

China may move more quickly to curb its overcapacity, the root of the import surge and price pressure that is hurting U.S. producers. Yet the decision has generated conflict within his own administration, his party and with key U.S. allies that, at least at the margin, counteracts the boost from the rest of his agenda.

Trump's announcement lifted American steel and aluminum stocks because those companies stand to benefit from penalties against their foreign competitors. U.S. Steel climbed 3%. But the broader market sank because of trade war fears. The Dow fell about 200 points.

The United States is also exploring the possibility of putting new tariffs on cars. Last week, The Trump administration announced an investigation into whether automobile imports are hurting US national security, laying the groundwork for another trade fight.

The Mexican government said that the US action was not justified, and that it would retaliate with its own comparable penalties on US products including lamps, pork, fruit, cheese and flat steel.

The Trump administration surprised observers on Tuesday by announcing it would impose tariffs on $50 billion worth of Chinese goods and restrict Chinese investment in the United States.

Steel industry groups called on politicians in affected countries to defend their companies and workers. Eurofer, the European Steel Association, asked EU leaders to "react accordingly with appropriate and proportionate measures."

We’re going to manage through this so that it is not detrimental” to economic-growth gains.

The departure will put pressure on other advisers, especially Mr. Mnuchin, to make the case for preserving the post-World War II trade architecture the U.S. helped construct and to speak credibly to financial markets.

On CNBC, Mr. Ross said the steps were needed to target China, which is a major steel producer but doesn’t account for a large share of U.S. imports, because China makes significant transshipments through other countries.

Critics have said the tariffs, issued under the guise of national-security considerations, will damage relationships with Canadian and European allies, slow economic growth and harm American metal-consuming industries.

“He’s not afraid to get into a trade war although that’s not what we want,” said Mr. Mnuchin. “Let’s be very clear. We’re not looking to get into trade wars.”

big benefits for the U.S. steel industry, but caused “some harm” to U.S. firms that use steel and faced higher costs.

White House press secretary Sarah Huckabee Sanders said Wednesday there may be “potential carveouts” for Mexico, Canada and possibly other countries. But officials said it was unclear whether that would be addressed on Thursday; Mr. Trump may take additional action later to give national-security exemptions on a country-by-country basis

It's not clear what political effect the order would have in the Pennsylvania race. The Democratic candidate in the race supports Trump's tariff proposal.The move is expected to be questioned and countered, and could further put the US at odds with the international community.

The tariff signing came after days of confusion over how the President would move forward. On Thursday morning, the situation was still shrouded in uncertainty. Multiple officials awoke with no clear picture of what Trump was prepared to sign during the afternoon event. Advisers have been scrambling since last week to finalize details on the tariffs after Trump announced he would impose them during a meeting with industry executives.

"He may be a globalist, but I still like him," Trump said Thursday of Cohn, who was sitting in the room and announced earlier this week he is resigning as director of the National Economic Council. "He is seriously a globalist, there is no question. But in his own way he's a nationalist because he loves our country."

But the Europeans say they will discuss the Trump administration’s concerns only after the bloc receives a permanent, unconditional exemption from the tariffs. They regard the tariffs as illegal under global rules.“We will not negotiate under threat,” the commission said in the statement Tuesday.

“There is huge frustration with the way the administration is doing business,” said Mujtaba Rahman, managing director in London for Eurasia Group, a consultancy.

Economists say the biggest danger to the global economy is not so much the tariffs as the insecurity they sow among business managers trying to plan where to buy or sell products that contain steel or aluminum. Advertisement Continue reading the main story Big metals consumers like auto manufacturers and construction firms have been stockpiling supplies, girding for a disruptive trade war. “As a result, there is a visible surge in steel prices in the U.S., which negatively affects manufacturing and many other sectors,” said Max Finne, assistant professor of operations management at the University of Warwick in Britain.Mr. Trump’s provocative approach has fueled anxiety in Europe that the long-awaited economic recovery is losing momentum. The threat of a trade war adds to a list of risks that are making businesses less willing to invest and create jobs, including the imminent end of European Central Bank stimulus, Britain’s planned exit from the bloc and political deadlock in Italy.

The European Union regards the planned tariffs on steel and aluminum as a violation of international treaties and has already complained to the World Trade Organization, normally the arbiter of trade disputes. The complaint lays the groundwork for the bloc to impose retaliatory tariffs on a long list of American products — including bluejeans, bourbon and Harley-Davidson motorcycles — as early as mid-June.

The Obama administration pursued such an agreement for years, but it was largely moribund even before Mr. Trump took office, in part because of popular opposition in Germany.

Europe would be happy to cooperate with the United States to press China on issues such as protection of intellectual property. But in the current climate it seems unlikely that the European Union and United States are capable of joining forces.“The way Trump is going about it may not be the most effective, but he’s put it on the agenda. There is some sympathy for that,” Mr. Rahman said. “But it’s very difficult. The process seems completely broken.”

So why did Trump do it? The reasons are obvious. First reason: politics. It’s March of Trump’s midterm election year. He needs to be able to say he’s delivered on his promises to American workers. Now he can say that. Second reason: politics. There is a special election in western Pennsylvania on Tuesday, and it’s widely believed that the Republican candidate is weak, in a district Trump carried by 20 points. The tariff announcement can’t hurt with that one.

Of course in the White House, all this just makes the president laugh. He’s looking at his poll numbers; confident they’ll go up; the midterms are coming into focus and things are right on track.

If the U.S. cites national security as its reason for imposing the tariffs in the face of a WTO challenge, it’s unclear how the trade body would respond. “The WTO doesn’t have a lot of experience in adjudicating this sort of dispute,” Oxenford said, noting that the U.S.’s decision to effectively target its allies and geopolitical rivals alike could make the justification seem tenuous. Even if the WTO were to rule against the U.S., it’s unlikely it would change the president’s stance. Trump threatened to pull the U.S. out of the WTO, which he has also accused of being biased against the U.S. “We lose almost all of the lawsuits within the WTO because we have fewer judges than other countries,” Trump said in October. “It’s set up. You can’t win.”

Hopes remain that the fallout could be contained. Analysts at the research firm Oxford Economics said the economic hit for Europe would be well below 0.1% of GDP, as steel and aluminium only make up a small part of the bloc’s overall exports around the world. However, they warned a tit-for-tat escalation leading to tariffs on other goods, such as cars, would have dire consequences for global trade.

Ross blamed insufficient progress in talks with Mexico and Canada over changes to the North American Free Trade Agreement (Nafta) for the US’s decision to slap tariffs on its two neighbours.

Among the cities that were still in the running for Amazon’s dangled plum was Washington. Amazon had already developed a conspicuous presence in the nation’s capital: It had vastly increased its lobbying presence there, it was doing major business in selling its cloud services to the federal government and homeland-security industrial complex, and Jeff Bezos had not only purchased the local newspaper, he also picked Washington’s largest private home, a $23 million mansion in the Kalorama neighborhood, to which he added $12 million in renovations.

These were streets in East Baltimore that were once home to blocks after blocks of working- and middle-class families, white and Black, including many who worked at Beth Steel. For the better part of a century, those jobs, and those homes, had sustained a stable existence for countless families and undergirded economic vitality for the city as a whole.Now, like Sparrows Point before it, that segment of Baltimore’s built landscape, and the history it represented, was slowly disappearing. And the dismantling of one town was being used to prop up another, with new residents — some of them likely arriving for high-paid jobs at Amazon’s HQ2 — blithely purchasing the facade of a false past.

Mars will need ground transportation, too.

especially if the Cybertruck manages to become a high-volume production vehicle (unlikely because of its controversial design, but perhaps possible based on the economics if Tesla can stick to the price points it revealed on stage)

But China is buying fewer U.S. soybeans, thanks to bumper harvests of cheaper beans in South America.

Limited storage capacity forced many Brazilian farmers to sell at low prices, analysts said. Many Chinese crushers also prefer the higher protein content of Brazilian beans. Brazil’s soybean exports to China more than doubled from September to January while U.S. sales to China dropped more than 20%.

The White House proposal for tariffs on steel and aluminum has nevertheless exacerbated concerns about retaliation, according to research firm AgResource Co. Even if China couldn't avoid the U.S. altogether, the firm said, it could buy exclusively from Brazil for the next six or seven months.

Other headwinds for U.S. soybean farmers are strengthening. U.S. officials said they would start labeling soybean shipments to China that contain more than 1% of detritus like weed seeds, to conform with Chinese requirements.

“It’s just one more factor that has contributed to the relative uncompetitive nature of U.S. soybeans,” said Ken Morrison, a trader and commodity newsletter author.

Within a week of making the announcement, which could provoke a cycle of retaliation between trade partners, President Trump continued to defend the move even as his own White House worked to soften its effects.

After the European Union threatened countertariffs on goods like Harley-Davidson motorcycles, Kentucky bourbon and bluejeans, Mr. Trump said he was prepared to escalate the fight by imposing higher taxes on European cars. (China, in the meantime, has been fairly cautious in weighing in.)

A potential threat to the economy