Trump To Implement 25% Tariffs On Steel And Aluminum In Trade Policy Shift

U.S. President Donald Trump has confirmed his plan to introduce 25% tariffs on all steel and aluminum imports. This decision adds to the existing metals duties and marks a significant escalation in his ongoing trade policy revisions.

Speaking to reporters aboard Air Force One while en route to the NFL Super Bowl in New Orleans, Trump stated that he would make the official announcement regarding these tariffs on Monday.

Additionally, he revealed that reciprocal tariffs will be introduced on Tuesday or Wednesday, taking effect almost immediately. These tariffs will match the rates imposed by individual nations on U.S. goods.

“If they charge us, we charge them,” Trump explained regarding his reciprocal tariff strategy.

Major Suppliers Affected

According to government data and the American Iron and Steel Institute, the primary sources of U.S. steel imports are:

• Canada
• Brazil
• Mexico
• South Korea
• Vietnam

For aluminum, Canada stands as the largest supplier, contributing 79% of total U.S. imports in the first 11 months of 2024.

Canadian officials were quick to respond. Francois-Philippe Champagne, Canada’s Innovation Minister, emphasized the importance of Canadian steel and aluminum to key U.S. industries such as defense, shipbuilding, and auto manufacturing.

“We will continue to stand up for Canada, our workers, and our industries,” Champagne stated on X (formerly Twitter).

Investment Restrictions on U.S. Steel

Trump also addressed Japan’s Nippon Steel (5401.T) interest in investing in U.S. Steel (X.N), stating that while the U.S. government would allow the investment, it would not permit majority ownership.

“Tariffs are going to make it very successful again, and I think it has good management,” Trump said regarding U.S. Steel.

Japan’s Nippon Steel declined to comment on the latest policy shift.

Past Tariffs and Exemptions

During Trump’s first term, he introduced tariffs of:

• 25% on steel
• 10% on aluminum

However, some trade partners, including Canada, Mexico, and Brazil, were later granted duty-free exemptions.

Additionally, former President Joe Biden negotiated duty-free quota arrangements with Britain, the European Union, and Japan. It remains unclear how these exemptions and quota agreements will be affected under Trump’s new plan.

The Impact on U.S. Industries

Year	Steel Mill Capacity Usage (%)	Key Trade Policy
2019	Above 80%	Trump’s tariffs on steel
2024	Declining	China’s steel dominance affects prices

The previous tariffs on steel led to an increase in steel mill capacity usage, reaching over 80% in 2019. However, this growth has slowed due to China’s dominance in global steel production, which has pushed steel prices downward.

A Missouri-based aluminum smelter, revived by Trump’s earlier tariffs, was forced to shut down last year due to financial struggles.

Matching Global Tariff Rates

Trump announced that he will hold a press conference on Tuesday or Wednesday to share further details on the reciprocal tariff policy.

He has frequently criticized the European Union’s 10% tariffs on U.S. auto imports, which significantly exceed the 2.5% U.S. tariff on European vehicles.

While Trump has repeatedly argued that Europe restricts U.S. car exports, the U.S. still enforces a 25% tariff on pickup trucks—a sector that generates substantial profits for Detroit-based automakers such as:

• General Motors (GM.N)
• Ford (F.N)
• Stellantis (STLAM.MI)

Comparison of Global Trade Tariffs

Country/Region	Average Tariff Rate (%)
United States	2.2%
European Union	2.7%
Vietnam	5.1%
Brazil	6.7%
India	12%

Border Security and Tariff Deadlines

In a separate interview with Fox News, Trump expressed dissatisfaction with Canada’s and Mexico’s border security efforts, particularly in controlling the movement of drugs and migrants.

He warned that unless stronger measures are taken before March 1, he will implement a 25% tariff on all Canadian and Mexican imports.

Recent border security measures by these nations include:

• Mexico: Deployment of 10,000 National Guard troops along the U.S.-Mexico border.
• Canada: Introduction of new technology and personnel, alongside anti-fentanyl initiatives.

Trump’s latest tariff policies signal a major escalation in trade tensions, affecting key steel and aluminum suppliers like Canada, Brazil, and Mexico. The introduction of reciprocal tariffs could lead to retaliatory trade actions, potentially disrupting global markets.

Additionally, border security concerns with Canada and Mexico add further uncertainty to North American trade relations. With a March 1 deadline looming, businesses and global leaders will be closely monitoring the situation to assess its economic impact.

FAQs

What are the new tariffs Trump is implementing?

Trump is imposing a 25% tariff on steel and aluminum imports, in addition to reciprocal tariffs matching other countries’ rates on U.S. exports.

Which countries are most affected by these tariffs?

The largest steel and aluminum suppliers to the U.S. are Canada, Brazil, and Mexico, followed by South Korea and Vietnam.

What happened to the previous tariff exemptions?

It remains unclear how exemptions granted to Canada, Mexico, Brazil, Britain, the EU, and Japan will be affected by the new tariffs.