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President Trump announced on Thursday that he's going to impose tariffs on imports of steel (25%) and aluminum (10%). He has long called for these tariffs, saying America is being cheated by foreign competitors and its large trade deficits.

The big picture: Trump's announcement jolted markets, upset allies and led to rebukes from The Wall Street Journal and some congressional Republicans.

Winners and losers

Winners: Domestic steel and aluminum manufacturers avoid getting undercut on prices from abroad.

Losers: Companies that rely on steel and aluminum for production and services will face higher costs. Consumers could pay higher prices. Conservatives and free-traders are losing in their long-term effort to minimize tariffs and other import duties.

What's next: An escalating trade war?

Business
In Washington
Inside the White House
  • From Mike Allen and Swan: Trump has grown to especially hate Kelly’s rigid rules, so he purposely blew off Chief of Staff John Kelly’s process and announced planned tariffs in a haphazard way.
  • Staff can try to impose their views on Trump. But when it comes to trade — the one thing he’s believed consistently for 30 years — they will inevitably fail.
  • Staff to flee? Trump just completely circumvented the interagency process and is executing a policy chief economic advisor Gary Cohn and other free traders think is calamitous.
  • A 24% steel tariff was recommended to Trump, but he increased to 25% because it's a nice round number.
  • Trade is one of Trump's oldest consistent policy issues. In an Oval Office meeting last year, he told advisers: "I want tariffs. Bring me some tariffs!"
International fallout

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Joe Biden is planning to confront China across the globe, embracing some of President Trump's goals but rejecting his means.

The big picture: By starting a trade war with China, Trump has fundamentally altered the U.S.- China relationship — and forced both Republicans and Democrats to accept a more confrontational approach towards Beijing.

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Coronavirus dashboard

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In pictures: Storm Zeta churns inland after lashing Louisiana

Debris on the streets as then-Hurricane Zeta passes over in Arabi, Louisiana, on Oct. 28. It's the third hurricane to hit Louisiana in about two months, after Laura and Delta. Photo: Sandy Huffaker/Getty Images

Tropical Storm Zeta has killed at least two people, triggered flooding, downed powerlines and caused widespread outages since making landfall in Louisiana as a Category 2 hurricane on Wednesday.

The big picture: A record 11 named storms have made landfall in the U.S. this year. Zeta is the fifth named storm to do so in Louisiana in 2020, the most ever recorded. It weakened t0 a tropical storm early Thursday, as it continued to lash parts of Alabama and the Florida Panhandle with heavy rains and strong winds.