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
Commentary: A leading roboticist punctures the hype about self-driving cars, AI chatbots and humanoid robots
It may come to your attention that we are inundated with technological hype. Self-driving cars, human-like robots and AI chatbots all have been the subject of sometimes outlandishly exaggerated predictions and promises.
So we should be thankful for Rodney Brooks, an Australian-born technologist who has made it one of his missions in life to deflate the hyperbole about these and other supposedly world-changing technologies offered by promoters, marketers and true believers.
As I’ve written before, Brooks is nothing like a Luddite. Quite the contrary: He was a co-founder of IRobot, the maker of the Roomba robotic vacuum cleaner, though he stepped down as the company’s chief technology officer in 2008 and left its board in 2011. He’s a co-founder and chief technology officer of RobustAI, which makes robots for factories and warehouses, and former director of computer science and artificial intelligence labs at Massachusetts Institute of Technology.
Having ideas is easy. Turning them into reality is hard. Turning them into being deployed at scale is even harder.
— Rodney Brooks
In 2018, Brooks published a post of dated predictions about the course of major technologies and promised to revisit them annually for 32 years, when he would be 95. He focused on technologies that were then — and still are — the cynosures of public discussion, including self-driving cars, human space travel, AI bots and humanoid robots.
“Having ideas is easy,” he wrote in that introductory post. “Turning them into reality is hard. Turning them into being deployed at scale is even harder.”
Brooks slotted his predictions into three pigeonholes: NIML, for “not in my lifetime,” NET, for “no earlier than” some specified date, and “by some [specified] date.”
On Jan. 1 he published his eighth annual predictions scorecard. He found that over the years “my predictions held up pretty well, though overall I was a little too optimistic.”
For example in 2018 he predicted “a robot that can provide physical assistance to the elderly over multiple tasks [e.g., getting into and out of bed, washing, using the toilet, etc.]” wouldn’t appear earlier than 2028; as of New Year’s Day, he writes, “no general purpose solution is in sight.”
The first “permanent” human colony on Mars would come no earlier than 2036, he wrote then, which he now calls “way too optimistic.” He now envisions a human landing on Mars no earlier than 2040, and the settlement no earlier than 2050.
A robot that seems “as intelligent, as attentive, and as faithful, as a dog” — no earlier than 2048, he conjectured in 2018. “This is so much harder than most people imagine it to be,” he writes now. “Many think we are already there; I say we are not at all there.” His verdict on a robot that has “any real idea about its own existence, or the existence of humans in the way that a 6-year-old understands humans” — “Not in my lifetime.”
Brooks points out that one way high-tech promoters finesse their exaggerated promises is through subtle redefinition. That has been the case with “self-driving cars,” he writes. Originally the term referred to “any sort of car that could operate without a driver on board, and without a remote driver offering control inputs … where no person needed to drive, but simply communicated to the car where it should take them.”
Waymo, the largest purveyor of self-driven transport, says on its website that its robotaxis are “the embodiment of fully autonomous technology that is always in control from pickup to destination.” Passengers “can sit in the back seat, relax, and enjoy the ride with the Waymo Driver getting them to their destination safely.”
Brooks challenges this claim. One hole in the fabric of full autonomy, he observes, became clear Dec. 20, when a power blackout blanketing San Francisco stranded much of Waymo’s robotaxi fleet on the streets. Waymos, which can read traffic lights, clogged intersections because traffic lights went dark.
The company later acknowledged its vehicles occasionally “require a confirmation check” from humans when they encounter blacked-out traffic signals or other confounding situations. The Dec. 20 blackout, Waymo said, “created a concentrated spike in these requests,” resulting in “a backlog that, in some cases, led to response delays contributing to congestion on already-overwhelmed streets.”
It’s also known that Waymo pays humans to physically deal with vehicles immobilized by — for example — a passenger’s failure to fully close a car door when exiting. They can be summoned via the third-party app Honk, which chiefly is used by tow truck operators to find stranded customers.
“Current generation Waymos need a lot of human help to operate as they do, from people in the remote operations center to intervene and provide human advice for when something goes wrong, to Honk gig workers scampering around the city,” Brooks observes.
Waymo told me its claim of “fully autonomous” operation is based on the fact that the onboard technology is always in control of its vehicles. In confusing situations the car will call on Waymo’s “fleet response” team of humans, asking them to choose which of several optional paths is the best one. “Control of the vehicle is always with the Waymo Driver” — that is, the onboard technology, spokesman Mark Lewis told me. “A human cannot tele-operate a Waymo vehicle.”
As a pioneering robot designer, Brooks is particularly skeptical about the tech industry’s fascination with humanoid robots. He writes from experience: In 1998 he was building humanoid robots with his graduate students at MIT. Back then he asserted that people would be naturally comfortable with “robots with humanoid form that act like humans; the interface is hardwired in our brains,” and that “humans and robots can cooperate on tasks in close quarters in ways heretofore imaginable only in science fiction.”
Since then it has become clear that general-purpose robots that look and act like humans are chimerical. In fact in many contexts they’re dangerous. Among the unsolved problems in robot design is that no one has created a robot with “human-like dexterity,” he writes. Robotics companies promoting their designs haven’t shown that their proposed products have “multi-fingered dexterity where humans can and do grasp things that are unseen, and grasp and simultaneously manipulate multiple small objects with one hand.”
Two-legged robots have a tendency to fall over and “need human intervention to get back up,” like tortoises fallen on their backs. Because they’re heavy and unstable, they are “currently unsafe for humans to be close to when they are walking.”
(Brooks doesn’t mention this, but even in the 1960s the creators of “The Jetsons” understood that domestic robots wouldn’t rely on legs — their robot maid, Rosie, tooled around their household on wheels, a perception that came as second nature to animators 60 years ago but seems to have been forgotten by today’s engineers.)
As Brooks observes, “even children aged 3 or 4 can navigate around cluttered houses without damaging them. … By age 4 they can open doors with door handles and mechanisms they have never seen before, and safely close those doors behind them. They can do this when they enter a particular house for the first time. They can wander around and up and down and find their way.
“But wait, you say, ‘I’ve seen them dance and somersault, and even bounce off walls.’ Yes, you have seen humanoid robot theater. “
Brooks’ experience with artificial intelligence gives him important insights into the shortcomings of today’s crop of large language models — that’s the technology underlying contemporary chatbots — what they can and can’t do, and why.
“The underlying mechanism for Large Language Models does not answer questions directly,” he writes. “Instead, it gives something that sounds like an answer to the question. That is very different from saying something that is accurate. What they have learned is not facts about the world but instead a probability distribution of what word is most likely to come next given the question and the words so far produced in response. Thus the results of using them, uncaged, is lots and lots of confabulations that sound like real things, whether they are or not.”
The solution is not to “train” LLM bots with more and more data, in the hope that eventually they will have databases large enough to make their fabrications unnecessary. Brooks thinks this is the wrong approach. The better option is to purpose-build LLMs to fulfill specific needs in specific fields. Bots specialized for software coding, for instance, or hardware design.
“We need guardrails around LLMs to make them useful, and that is where there will be lot of action over the next 10 years,” he writes. “They cannot be simply released into the wild as they come straight from training. … More training doesn’t make things better necessarily. Boxing things in does.”
Brooks’ all-encompassing theme is that we tend to overestimate what new technologies can do and underestimate how long it takes for any new technology to scale up to usefulness. The hardest problems are almost always the last ones to be solved; people tend to think that new technologies will continue to develop at the speed that they did in their earliest stages.
That’s why the march to full self-driving cars has stalled. It’s one thing to equip cars with lane-change warnings or cruise control that can adjust to the presence of a slower car in front; the road to Level 5 autonomy as defined by the Society of Automotive Engineers — in which the vehicle can drive itself in all conditions without a human ever required to take the wheel — may be decades away at least. No Level 5 vehicles are in general use today.
Believing the claims of technology promoters that one or another nirvana is just around the corner is a mug’s game. “It always takes longer than you think,” Brooks wrote in his original prediction post. “It just does.”
Business
Versant launches, Comcast spins off E!, CNBC and MS NOW
Comcast has officially spun off its cable channels, including CNBC and MS NOW, into a separate company, Versant Media Group.
The transaction was completed late Friday. On Monday, Versant took a major tumble in its stock market debut — providing a key test of investors’ willingness to hold on to legacy cable channels.
The initial outlook wasn’t pretty, providing awkward moments for CNBC anchors reporting the story.
Versant fell 13% to $40.57 a share on its inaugural trading day. The stock opened Monday on Nasdaq at $45.17 per share.
Comcast opted to cast off the still-profitable cable channels, except for the perennially popular Bravo, as Wall Street has soured on the business, which has been contracting amid a consumer shift to streaming.
Versant’s market performance will be closely watched as Warner Bros. Discovery attempts to separate its cable channels, including CNN, TBS and Food Network, from Warner Bros. studios and HBO later this year. Warner Chief Executive David Zaslav’s plan, which is scheduled to take place in the summer, is being contested by the Ellison family’s Paramount, which has launched a hostile bid for all of Warner Bros. Discovery.
Warner Bros. Discovery has agreed to sell itself to Netflix in an $82.7-billion deal.
The market’s distaste for cable channels has been playing out in recent years. Paramount found itself on the auction block two years ago, in part because of the weight of its struggling cable channels, including Nickelodeon, Comedy Central and MTV.
Management of the New York-based Versant, including longtime NBCUniversal sports and television executive Mark Lazarus, has been bullish on the company’s balance sheet and its prospects for growth. Versant also includes USA Network, Golf Channel, Oxygen, E!, Syfy, Fandango, Rotten Tomatoes, GolfNow, GolfPass and SportsEngine.
“As a standalone company, we enter the market with the scale, strategy and leadership to grow and evolve our business model,” Lazarus, who is Versant’s chief executive, said Monday in a statement.
Through the spin-off, Comcast shareholders received one share of Versant Class A common stock or Versant Class B common stock for every 25 shares of Comcast Class A common stock or Comcast Class B common stock, respectively. The Versant shares were distributed after the close of Comcast trading Friday.
Comcast gained about 3% on Monday, trading around $28.50.
Comcast Chairman Brian Roberts holds 33% of Versant’s controlling shares.
Business
Ties between California and Venezuela go back more than a century with Chevron
As a stunned world processes the U.S. government’s sudden intervention in Venezuela — debating its legality, guessing who the ultimate winners and losers will be — a company founded in California with deep ties to the Golden State could be among the prime beneficiaries.
Venezuela has the largest proven oil reserves on the planet. Chevron, the international petroleum conglomerate with a massive refinery in El Segundo and headquartered, until recently, in San Ramon, is the only foreign oil company that has continued operating there through decades of revolution.
Other major oil companies, including ConocoPhillips and Exxon Mobil, pulled out of Venezuela in 2007 when then-President Hugo Chávez required them to surrender majority ownership of their operations to the country’s state-controlled oil company, PDVSA.
But Chevron remained, playing the “long game,” according to industry analysts, hoping to someday resume reaping big profits from the investments the company started making there almost a century ago.
Looks like that bet might finally pay off.
In his news conference Saturday, after U.S. Special Forces snatched Venezuelan President Nicolás Maduro and his wife in Caracas and extradited them to face drug-trafficking charges in New York, President Trump said the U.S. would “run” Venezuela and open more of its massive oil reserves to American corporations.
“We’re going to have our very large U.S. oil companies, the biggest anywhere in the world, go in, spend billions of dollars, fix the badly broken infrastructure, the oil infrastructure, and start making money for the country,” Trump said during a news conference Saturday.
While oil industry analysts temper expectations by warning it could take years to start extracting significant profits given Venezuela’s long-neglected, dilapidated infrastructure, and everyday Venezuelans worry about the proceeds flowing out of the country and into the pockets of U.S. investors, there’s one group who could be forgiven for jumping with unreserved joy: Chevron insiders who championed the decision to remain in Venezuela all these years.
But the company’s official response to the stunning turn of events has been poker-faced.
“Chevron remains focused on the safety and well-being of our employees, as well as the integrity of our assets,” spokesman Bill Turenne emailed The Times on Sunday, the same statement the company sent to news outlets all weekend. “We continue to operate in full compliance with all relevant laws and regulations.”
Turenne did not respond to questions about the possible financial rewards for the company stemming from this weekend’s U.S. military action.
Chevron, which is a direct descendant of a small oil company founded in Southern California in the 1870s, has grown into a $300-billion global corporation. It was headquartered in San Ramon, just outside of San Francisco, until executives announced in August 2024 that they were fleeing high-cost California for Houston.
Texas’ relatively low taxes and light regulation have been a beacon for many California companies, and most of Chevron’s competitors are based there.
Chevron began exploring in Venezuela in the early 1920s, according to the company’s website, and ramped up operations after discovering the massive Boscan oil field in the 1940s. Over the decades, it grew into Venezuela’s largest foreign investor.
The company held on over the decades as Venezuela’s government moved steadily to the left; it began to nationalize the oil industry by creating a state-owned petroleum company in 1976, and then demanded majority ownership of foreign oil assets in 2007, under then-President Hugo Chávez.
Venezuela has the world’s largest proven crude oil reserves — meaning they’re economical to tap — about 303 billion barrels, according to the U.S. Energy Information Administration.
But even with those massive reserves, Venezuela has been producing less than 1% of the world’s crude oil supply. Production has steadily declined from the 3.5 million barrels per day pumped in 1999 to just over 1 million barrels per day now.
Currently, Chevron’s operations in Venezuela employ about 3,000 people and produce between 250,000 and 300,000 barrels of oil per day, according to published reports.
That’s less than 10% of the roughly 3 million barrels the company produces from holdings scattered across the globe, from the Gulf of Mexico to Kazakhstan and Australia.
But some analysts are optimistic that Venezuela could double or triple its current output relatively quickly — which could lead to a windfall for Chevron.
The Associated Press contributed to this report.
-
World1 week agoHamas builds new terror regime in Gaza, recruiting teens amid problematic election
-
News1 week agoFor those who help the poor, 2025 goes down as a year of chaos
-
Business1 week agoInstacart ends AI pricing test that charged shoppers different prices for the same items
-
World1 week agoPodcast: The 2025 EU-US relationship explained simply
-
Business1 week agoApple, Google and others tell some foreign employees to avoid traveling out of the country
-
Technology1 week agoChatGPT’s GPT-5.2 is here, and it feels rushed
-
Health1 week agoDid holiday stress wreak havoc on your gut? Doctors say 6 simple tips can help
-
Politics1 week ago‘Unlucky’ Honduran woman arrested after allegedly running red light and crashing into ICE vehicle