Part 2/9:
In an effort to rectify this situation, the Trump administration implemented a 25% tariff on foreign aluminum, copper, lumber, and steel. Tariffs function as taxes imposed on imported goods, creating a cost burden for importers that can potentially be passed down to consumers. However, the true impact of these tariffs hinges on ongoing negotiations and their acceptance in the market.
The administration's goal is to reinvigorate U.S. manufacturing for these critical materials, with the hope that more production will shift back to American shores. Yet, transitioning production domestically would come at a high price, particularly due to the immense energy demands of aluminum production – an astonishing six times greater than that of AI data centers.