Trump to Introduce 25% Tariffs on Steel and Aluminum, Plans Reciprocal Trade Measures
U.S. President Donald Trump announced on Sunday that he will impose a new 25% tariff on all steel and aluminum imports, in addition to existing duties on these metals, further intensifying his trade policies.
On Monday, President Donald Trump will introduce additional tariffs on steel and aluminum imports, marking another step in the ongoing trade dispute.
Companies bringing these metals into the U.S. will be required to pay an extra 25% on top of the current tariffs already in place.
The status of previous tariff exemptions for Mexico and Canada remains uncertain at this time.
"The U.S. will implement reciprocal tariffs to ensure our rates align with those of other countries," Trump stated.
Speaking to reporters aboard Air Force One while en route to the NFL Super Bowl in New Orleans, Trump stated that the official announcement would come on Monday.
He also revealed that reciprocal tariffs will be introduced on Tuesday or Wednesday, taking effect almost immediately and applying to all countries at rates equivalent to what they impose on the U.S.
"And very simply, it's, if they charge us, we charge them," Trump explained regarding the new policy.
Impact on Key Trading Partners
Canada, Brazil, and Mexico are the largest suppliers of steel to the U.S., followed by South Korea and Vietnam, based on government and American Iron and Steel Institute data.
For aluminum, Canada remains the dominant supplier, accounting for 79% of U.S. imports in the first 11 months of 2024.
Canadian Innovation Minister Francois-Philippe Champagne responded to the tariffs on X, emphasizing the significance of Canada's steel and aluminum industries to U.S. sectors.
"Canadian steel and aluminum support key industries in the US from defence, shipbuilding and auto," Champagne wrote. "We will continue to stand up for Canada, our workers, and our industries."
Trump also commented on Japan’s Nippon Steel's attempt to invest in U.S. Steel, clarifying that while the investment would be allowed, a majority stake would not be permitted.
"Tariffs are going to make it very successful again, and I think it has good management," he said about U.S. Steel.
Nippon Steel has not yet responded to Trump's latest statements.
Uncertainty Over Trade Quotas
During his first term, Trump had imposed 25% tariffs on steel and 10% on aluminum but later granted duty-free exemptions to certain partners, including Canada, Mexico, and Brazil. Additionally, former President Joe Biden had negotiated quota-based exemptions with Britain, the European Union, and Japan.
Following Trump’s latest announcement, it remains unclear whether those exemptions and quotas will remain in place.
Quebec Premier Francois Legault expressed concerns over the impact of the tariffs on the region’s aluminum exports, posting on X:
"Quebec exports 2.9 million tons of aluminum to (the US), that is, 60% of their needs. Do they prefer to get supplies from China?"
Legault also pushed for an early renegotiation of the free trade agreement with the U.S., arguing that waiting until 2026 for the scheduled review would prolong uncertainty.
Tariffs and U.S. Industry
Trump’s initial metal tariffs in 2018 had briefly boosted U.S. steel mill capacity usage above 80% in 2019, but the industry has since struggled due to China’s continued dominance in steel production, leading to declining prices.
Similarly, a Missouri aluminum smelter that was revived after the tariffs was shut down last year by Magnitude 7 Metals due to economic pressures.
Matching Global Tariffs
Trump has been a long-time critic of tariff imbalances, particularly pointing out that the European Union imposes a 10% tariff on U.S. car imports, while the U.S. only charges 2.5% on European vehicles.
The U.S. does, however, impose a 25% tariff on imported pickup trucks, a key segment for American automakers like General Motors, Ford, and Stellantis.
According to World Trade Organization data, the U.S. trade-weighted average tariff rate stands at 2.2%, compared to 12% for India, 6.7% for Brazil, 5.1% for Vietnam, and 2.7% for the EU.
Border Enforcement and Trade Threats
In a separate interview with Fox News, Trump criticized the border security measures taken by Canada and Mexico, saying they were inadequate ahead of a looming March 1 deadline.
He has threatened to impose a 25% tariff on all imports from both countries unless stronger measures are implemented to curb illegal immigration and drug trafficking.
Initially, the tariffs were paused following security commitments from both nations—Mexico pledged to deploy 10,000 National Guard troops to its border, while Canada introduced new technology and personnel to combat fentanyl smuggling.
However, Trump signaled dissatisfaction with their efforts.
"No, it's not good enough," he said. "Something has to happen, it's not sustainable, and I'm changing it."
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