Business
Trump Imposes 25% Tariffs on Steel and Aluminum From Foreign Countries
President Trump announced sweeping tariffs on foreign steel and aluminum on Monday, re-upping a policy from his first term that pleased domestic metal makers but hurt other American industries and ignited trade wars on multiple fronts.
The president signed two official proclamations that would impose a 25 percent tariff on steel and aluminum from all countries. Mr. Trump, speaking from the Oval Office on Monday evening, called the moves “a big deal.”
“It’s time for our great industries to come back to America,” the president said.
A White House official who was not authorized to speak publicly told reporters on Monday that the move was evidence of Mr. Trump’s commitment to use tariffs to put the United States on equal footing with other nations. In contrast with Mr. Trump’s first term, the official said, no exclusions to the tariffs for American companies that rely on foreign steel and aluminum will be allowed.
The measures were welcomed by domestic steelmakers, who have been lobbying the Trump administration for protection against cheap foreign metals.
But the tariffs are likely to rankle America’s allies like Canada and Mexico, which supply the bulk of U.S. metal imports. They could also elicit retaliation on U.S. exports, as well as pushback from American industries that use metals to make cars, food packaging and other products. Those sectors will face significantly higher prices after the tariffs go into effect.
That is what happened in Mr. Trump’s first term, when the president levied 25 percent tariffs on foreign steel and aluminum. While Mr. Trump and President Joseph R. Biden Jr. eventually rolled back those tariffs on most major metal suppliers, the levies were often replaced with other trade barriers, like quotas on how much foreign metal could come into the United States.
Studies have shown that while Mr. Trump’s first round of metal tariffs helped American steel and aluminum producers, they ended up hurting the broader economy because they raised prices for many other industries, including the auto sector.
The steel tariffs followed other intense trade threats. In his three weeks in office, the president has already threatened more tariffs globally than he did in his entire first term, when he imposed tariffs on foreign solar panels, washing machines, metals and more than $300 billion of products from China.
Since Jan. 20, Mr. Trump has put an additional 10 percent tariff on all products from China, and came within hours of imposing sweeping tariffs on Canada and Mexico that would have brought U.S. tariff rates to a level not seen since the 1940s. Together, those moves would have affected more than $1.3 trillion of goods.
Speaking from the Oval Office on Monday, Mr. Trump said his steel tariffs were “the first of many” to come. He said his team would be meeting over the next four weeks to discuss tariffs on cars, pharmaceuticals, chips and other goods.
Mr. Trump said on Sunday that he also planned to move forward this week with so-called reciprocal tariffs, which would raise certain U.S. tariff rates to match those of foreign countries.
American steelmakers welcomed the tariffs. In a statement on Sunday, Kevin Dempsey, the president of the American Iron and Steel Institute, said the group welcomed Mr. Trump’s “continued commitment to a strong American steel industry, which is essential to America’s national security and economic prosperity.”
But industries that use metals to make other products said overly broad protections would hurt them.
“Tariffs and other broad trade tools can make America great again, but there are unintended consequences for our nation’s food security when a tariff is placed on tin-plate steel,” said Robert Budway, the president of the Can Manufacturers Institute, which represents companies that make cans for fruits and vegetables.
The United Steelworkers union, which has members in Canada, said that it welcomed Mr. Trump’s effort to help the industry but that “Canada is not the problem.”
The new measures will mainly affect U.S. allies. The largest supplier of steel to the United States in 2024 was Canada, followed by Brazil, Mexico, South Korea and Vietnam, according to the American Iron and Steel Institute. Canada is also a major supplier of aluminum to the United States, followed distantly by the United Arab Emirates, Russia and China.
Late Monday, the governments of Canada, Mexico and Brazil had yet to respond to the tariffs. Brazil’s government said it did not have a response to Mr. Trump’s announcement of steel tariffs because it had not yet received any official communication from the U.S. government on the issue.
In his first term, Mr. Trump levied tariffs on foreign steel and aluminum using a national security provision called Section 232 of the Trade Expansion Act. That angered allies like Mexico, Canada and the European Union, which said they were not a security threat.
Mr. Trump used those tariffs as a negotiating tool. His officials reached agreements with Australia, South Korea and Brazil, and rolled back some of those barriers on Canada and Mexico when they signed a revised trade agreement with the United States. The Biden administration later reached agreements with the European Union, Britain and Japan to roll back some of their trade restrictions.
The United States imports very little steel or aluminum directly from China, since Chinese exports have long been blocked by a variety of anti-dumping and anti-subsidy tariffs. But some argue that China’s excess steel production is still flooding other markets and pushing down global prices, leaving U.S. metal makers at a disadvantage in other markets.
Brad Setser, an economist at the Council on Foreign Relations, said Chinese steel exports had basically doubled over the past two years and were creating economic issues globally as they flooded foreign markets, including in Asia and Latin America.
But Mr. Setser said he saw little evidence that Chinese steel was being routed into the United States through Canada or Mexico and undermining the U.S. industry.
“It’s pretty hard to make the case that the surge in Chinese exports globally has triggered a reduction in U.S. production,” he said. “U.S. production has been fairly stable.”
After Mr. Trump put steel tariffs into effect in 2018, U.S. steel imports steadily declined. But that trend reversed during the pandemic, when blast furnaces shuttered and supply chains seized up, and U.S. steelmakers were slower than competitors in Mexico to open back up, Mr. Setser said.
In the last few years, U.S. steel imports have been relatively flat, though they are slightly above the level when Mr. Trump imposed tariffs in his first term.
U.S. unions and major companies like Cleveland-Cliffs and U.S. Steel, which are influential with government, have argued that current protections are insufficient to keep them in business. Amid its financial struggles, U.S. Steel, the iconic Pennsylvania company, agreed to be acquired by Nippon Steel of Japan. That merger was blocked by Mr. Biden, who said he wanted to U.S. Steel to remain an American company.
Supporters of the tariffs have argued that the United States needs strong metal makers for its national defense.
Nazak Nikakhtar, a partner at the law firm Wiley Rein and an official in the first Trump administration, said the president was again “making good on his promise to impose tariffs globally and to increase tariffs on steel and aluminum imports, given their criticality to national security.”
But many economists argue that tariffs on raw materials like steel will hurt the economy, since they raise prices for other manufacturers.
A study by the nonpartisan International Trade Commission, for example, found that Mr. Trump’s earlier tariffs encouraged consumers of steel and aluminum to buy more American metals. The increase in demand pushed up metal prices and allowed American metal makers to expand, resulting in $2.25 billion of additional U.S. production of steel and aluminum in 2021.
But the tariffs also raised costs for industries that buy steel and aluminum to make other things, like industrial machinery, car parts and hand tools. Altogether, industries that consume steel and aluminum saw their production shrink by $3.48 billion as a result of the those higher costs — more than offsetting what the steel and aluminum makers had gained.
Other industries are concerned about being caught in the crossfire and targeted with tariffs as other countries retaliate. China imposed retaliatory tariffs on U.S. exports of liquefied natural gas, coal, farm machinery and other products on Monday in response to the tariffs Mr. Trump put on China last week because of its role in the fentanyl trade.
Mexico, Canada and the European Union have all drawn up lists of American products they could strike with their own levies in response to U.S. measures.
In response to Mr. Trump’s first metal tariffs, for example, the European Union imposed a 25 percent tariff on American whiskey. A deal negotiated by the American and European governments to suspend those tariffs is set to expire soon. If another agreement is not reached, the European Union is set to double that tariff to 50 percent on April 1.
Chris Swonger, the chief executive of the Distilled Spirits Council of the United States, said in a statement that the tariff would have a “catastrophic outcome” for 3,000 small distilleries across the United States.
“We are urging that the U.S. and E.U. move swiftly to find a resolution,” Mr. Swonger said. “Our great American whiskey industry is at stake.”
Colby Smith and Norimitsu Onishi contributed reporting.
Business
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Business
Consumers are spending $22 more a month on average for streaming services. Why do prices keep rising?
Six years ago, when San José author Katie Keridan joined Disney+, the cost was $6.99 a month, giving her family access to hundreds of movies like “The Lion King” and thousands of TV episodes, including Star Wars series “The Mandalorian,” with no commercials.
But since then, the price of an ad-free streaming plan has ballooned to $18.99 a month. That was the last straw for 42-year-old Keridan, whose husband canceled Disney+ last month.
“It was getting to where every year, it was going up, and in this economy, every dollar matters, and so we really had to sit down and take a hard look at how many streaming services are we paying for,” Keridan said. “What’s the return on enjoyment that we’re getting as a family from the streaming services? And how do we factor that into a budget to make sure that all of our bills are paid at the end of a month?”
It’s a conversation more people who subscribe to streaming services are having amid an uncertain economy.
Once sold at discounted rates, many platforms have raised prices at a clip consumers say frustrates them. The entertainment companies, under pressure from investors to bolster profits, have justified upping the cost of their plans to help pay for the premium content they provide. But some viewers aren’t buying it.
Customers are paying $22 more for subscription video streaming services than they were a year ago, according to consulting firm Deloitte. As of October, U.S. households on average shelled out $70 a month, compared with $48 a year ago, Deloitte said.
About 70% of consumers surveyed last month said they were frustrated the entertainment services that they subscribe to are raising prices and about a third said they have cut back on subscriptions in the last three months due to financial concerns, according to Deloitte.
“There’s a frustration, just in terms of both apathy, but also from a perspective that they just don’t think it’s worth the monthly subscription cost because of just fatigue,” said Rohith Nandagiri, managing director at Deloitte Consulting LLP.
Disney+ has raised prices on its streaming service nearly every year since it launched in 2019 at $6.99 a month. The company bumped prices on ad-free plans by $1 in 2021, followed by $3 increases in 2022 and 2023, a $2 price raise in 2024 and, most recently, a $3 increase this year to $18.99 a month.
Disney isn’t the only streamer to raise prices. Other companies, including Netflix, HBO Max and Apple TV also hiked prices on many of their subscription plans this year.
Some analysts say streamers are charging more because many services are adding live sports, the rights to which can cost millions of dollars. Streaming services for years have also given consumers access to big budget TV shows and original movies, and as production costs rise, they expect viewers to pay more, too.
But some consumers like Keridan have a different perspective. As much as some streaming platforms are adding new content like live sports, they are also choosing not to renew some big budget shows like “Star Wars: The Acolyte.” Keridan, a Marvel and Star Wars fan, said she mainly watched Disney+ for movies such as “Captain America: The Winter Soldier” and shows like “The Mandalorian.” Now she’s going back to watching some programs ad-free on Blu-Ray discs.
While Keridan cut Disney+, her family still subscribes to YouTube Premium and Paramount+. She said she uses YouTube Premium for workout videos instead of paying for a gym membership. Her family enjoys watching Star Trek programs on Paramount+, like the third season of “Star Trek: Strange New Worlds,” Keridan said.
Other consumers are choosing to keep their streaming subscriptions but look for cost savings through cheaper plans with ads, or by bundling services.
“Consumers are more willing today than ever to withstand advertising and for the sake of being able to get content for a lower subscription rate,” said Brent Magid, CEO and president of Minneapolis-based media consulting firm Magid. “We’ve seen that number increase just as people’s budgets have gotten tighter.”
Keridan said she’s already cutting other types of spending in her household in addition to quitting Disney+. The amount of money her family spends on groceries has gone up, and in order to save cash, they’ve cut back on traveling for the year. Typically, Keridan says, they would go on two or three vacations annually, but this year, they will only go to Disneyland in Anaheim.
But even the Happiest Place on Earth hasn’t escaped price hikes.
“Just as the streaming fees have risen, park fees have risen,” Keridan said. “And so it just seems every price of anything is rising these days, and they’re now directly in competition with each other. We can’t keep them all, so we have to make hard cuts.”
Business
Former Google chief accused of spying on employees through account ‘backdoor’
When Columbia University law and MBA student Michelle Ritter met former Google chief executive Eric Schmidt in 2020, she said she wanted to pitch a potential investment in a sports tech startup she had been developing.
That dinner blossomed into far more, a romance and business partnership in which she says the 70-year-old billionaire invested in excess of $100 million into a jointly owned tech incubator — before it all fell apart.
Now, Ritter is accusing Schmidt of stealing business out from under her, sexually assaulting her twice during their relationship, and tapping his Google background to hack into her email and online computer files, according to a lawsuit filed Wednesday in Los Angeles County Superior Court.
“During their relationship, Schmidt confided that when he worked at Google, he built an insider “backdoor” to Google servers with a team of Google engineers in order to spy on Google employees. Accordingly, the backdoor enabled him to access anyone’s Google account and private information,” the lawsuit says.
Google is also named as a defendant in the lawsuit and is alleged to “knowingly acquiescing in, failing to remedy, and materially assisting the unauthorized access” into Ritter’s accounts despite being provided notice. Schmidt and the company are accused of violating the California Comprehensive Computer Data Access and Fraud Act, and a section of the state penal code that prohibits wiretapping.
Patricia Glaser, an attorney representing Schmidt, called the lawsuit “yet another desperate and destructive effort to publish false and defamatory statements to escape accountability from an existing arbitration over a business dispute.”
Glaser added: “The claims made here are directly contradicted by her own words … and are just a final Hail Mary to save her from the consequences of her own actions. We are confident that we will prevail on both the specific legal issue enforcing the arbitration and disproving these fabricated pathetic allegations.”
Google did not immediately respond to a request for comment.
The complaint is the latest filing in a legal dispute that stretches back to at least December 2024, when Ritter sought a domestic violence restraining order against Schmidt. She later withdrew it after reaching a financial settlement with Schmidt with whom she had started the high-tech New York incubator with offices in Los Angeles, according to court records.
In her new lawsuit, Ritter alleges that Schmidt has not honored the settlement due to false accusations she was behind a media leak. She is seeking to have the settlement, which requires arbitration of disputes, thrown out.
Schmidt’s attorneys have called her legal filings a “blatant abuse of the judicial system” and a “transparent hit piece intended to smear and defame” Schmidt, according to court records. He is seeking to have the dispute settled in arbitration.
Several records in the case are under seal and many filings are heavily redacted. The lawsuit seeks at least $100 million in damages, with the next hearing set for Dec. 4. She is being represented by the law firm of prominent Los Angeles attorney Skip Miller.
Schmidt served as Google chief executive from 2001 to 2011 and later as the chairman of the Silicon Valley company and its parent, Alphabet Inc., until 2017. He retains shares in parent Alphabet worth about $14 billion giving him a net worth of about $34 billion, according to Forbes. He owns multiple homes in greater Los Angeles.
In the application for the December 2024 restraining order, Ritter alleged she lived in an “absolute digital surveillance system” and that Schmidt had directed affiliates to steal her corporate website, take control of her digital business records and have personal investigators follow her parents, according to a court filing.
The restraining order request also asked the judge to order Schmidt to not assault her “sexually or otherwise.”
The lawsuit filed on Wednesday provides more details about their business ventures and alleges a personal relationship that developed to the point that Schmidt made promises to marry her and have children, despite their 39-year age gap.
The lawsuit states their Steel Perlot venture was a success, with Schmidt investing more than $100 million into the accelerator and its startups in AI, crypto and other industries — prompting Schmidt to wrest control of the venture and its businesses from her.
Media reports suggest otherwise. Forbes has written the venture ran out of money in 2003 and needed millions from Schmidt to meet payroll and other expenses.
The lawsuit alleges that Schmidt became abusive as the relationship progressed and he “forcibly raped” her while on a yacht off the coast of Mexico in November 2021 and had sex with her without her consent during the Burning Man festival in Nevada in August 2023.
Schmidt, who has been married more than 40 years, has been linked romantically in the media with a series of much younger women.
The bitter dispute with Ritter echoes another business disagreement he had with public relations executive Marcy Simon, with whom he had a two-decade relationship that ended in 2014. It also involved a troubled joint business venture, according to a New York Times report. The report did not involve sexual assault claims.
Schmidt has achieved a certain gravitas in Silicon Valley, serving as tech advisor to the Obama administration and the military, testifying about artificial intelligence on Capitol Hill and giving away more than $1 billion in charity.
He’s also a part owner of the Washington Commanders football team and has amassed a real estate portfolio estimated to be worth several hundred million dollars.
Schmidt is reported to have spent $110 million this year on the 56,000-square-foot mansion in Holmby Hills built by the late producer Aaron Spelling. In 2021, he acquired a 15,000-square-foot Bel Air estate previously owned by the Hilton family, where court records indicate Ritter lived at the time she filed the restraining order.
Schmidt earlier this year took a controlling interest in Relativity Space, a Long Beach startup founded in 2015 with the intent to bring 3-D manufacturing to rocketry.
However, it has since shifted its focus and Schmidt indicated in a social media post that his interest may have to do with launching AI data centers into space due to their huge power needs.
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