Trump Imposes Fresh 25% Tariffs On Steel, Aluminium Imports
Donald Trump has announced a 25% tariff on all steel and aluminium imports into the United States, a move that is set to impact key trading partners, including Canada, Mexico, and Brazil. Speaking aboard Air Force One on Sunday, the president stated that the new tariffs would take effect on Monday, marking another major escalation of his trade policies.
Trump also revealed plans to introduce reciprocal tariffs later in the week, which would match the duties imposed by other countries on US goods. “If they charge us, we charge them,” he said, emphasising that the measure would be implemented “almost immediately.” The decision has triggered strong reactions globally, with critics warning of economic instability and potential retaliatory measures.
Canada and Mexico Among Those Affected
The United States relies heavily on imports for its steel and aluminium needs, with Canada supplying nearly 79% of its primary aluminium imports in 2024. Brazil and Mexico are also significant exporters of steel and aluminium to the US.
This is not the first time Trump has targeted foreign metal imports. During his first term, he imposed 25% tariffs on steel and 10% on aluminium but later granted certain exemptions to Canada, Mexico, and Brazil. Joe Biden’s administration extended similar arrangements to Britain, Japan, and the European Union, aiming to stabilise US steel production. However, Trump’s new tariffs will now apply across the board, potentially undoing previous trade agreements.
Doug Ford, the Premier of Ontario, condemned the move, accusing Trump of “shifting goalposts and constant chaos” that could threaten economic stability.
Global Reactions and Potential Retaliation
China, which has been engaged in a long-standing trade dispute with the US, had already imposed retaliatory tariffs last week, targeting $14 billion worth of American exports. These include a 15% tariff on coal and liquefied natural gas (LNG) and a 10% tariff on crude oil, farm equipment, and certain vehicles.
France has also weighed in, with President Emmanuel Macron warning that he was willing to go “head-to-head” with Trump on trade disputes. In an interview with CNN, Macron criticised US tariffs on European goods and urged Washington to focus on China rather than the European Union. “If you put tariffs on a lot of sectors, it will increase costs and create inflation in the US. Is it what your people want? I’m not so sure,” he remarked.
Trump’s tariff expansion is not limited to steel and aluminium. He has also signalled potential trade restrictions against Taiwan’s semiconductor industry, alleging—without evidence—that the sector has been harming US businesses. In response, Taiwanese officials are set to meet with their American counterparts to negotiate a resolution, while Taiwan’s state-run petroleum company is reportedly looking to buy more US gas and oil to reduce its trade surplus with the US.
Uncertain Economic Impact
The economic implications of Trump’s trade policy remain uncertain. His tariffs have previously been linked to volatile market reactions, and analysts warn that further duties could disrupt global supply chains. Beijing has filed a complaint with the World Trade Organisation (WTO), although its response has otherwise been measured.
Trump’s decision also raises concerns over the future of US trade agreements. His reciprocal tariffs could violate WTO commitments and trigger further retaliation from key trading partners, potentially escalating into a broader trade war.
With the new tariffs set to take effect on Monday and further measures expected later in the week, businesses and global leaders are bracing for another round of economic turbulence.
