US President Donald Trump intends to escalate trade policies by imposing fresh 25% tariffs on imports of steel and aluminum. Soon, he will declare reciprocal tariffs that will apply to all nations. Major suppliers include Canada, Brazil, and Mexico; Trump’s policies could affect current trade accords.
In a major shift in his trade strategy, US President Donald Trump declared on Sunday that he will add 25% new tariffs to the current metal charges on all steel and aluminum imports entering the US.
While speaking with the reporters on Air Force One en route to the NFL Super Bowl in New Orleans. Trump revealed that he would announce the new tariffs on Monday.
He also said he would advise reciprocal tariffs on Tuesday or Wednesday. This will take effect almost immediately.
Trump stated of the reciprocal tariff plan
“And very simply, it’s, if they charge us, we charge them,”.
The largest sources of US steel substances are Canada, Brazil, and Mexico, which are also followed by South Korea and Vietnam. The government and American Iron and Steel Institute data.
Canada has abundant hydropower resources. This is by far the largest supplier of primary aluminum metal to the U.S. This also makes up 79% of total import in the first 11 months of 2024.
Canadian Innovation Minister Francois-Philippe Champagne posted on X
“Canadian steel and aluminum support key industries in the U.S. from defence, shipbuilding and auto,”.
“We will continue to stand up for Canada, our workers, and our industries.”
Trump also stated that hence the U.S. government would allow Japan’s Nippon Steel to invest in U.S. Steel. It will not allow this to become a bulk stake.
Trump stated of U.S. Steel
“Tariffs are going to make it very successful again, and I think it has good management,”.
During his first term, Trump levied 25% steel and 10% aluminum tariffs. However, he eventually granted duty-free exemptions to a number of trading partners, including Canada, Mexico, and Brazil. According to Reuters, Mexico is a significant source of aluminum alloy and scrap.
Later, former President Joe Biden worked with Japan, the European Union, and Britain to achieve duty-free quota agreements. What would happen to those exemptions and quota arrangements was unclear at the time of Trump’s statement.
However, the United States benefits from a 25% tax on pickup trucks. There is a major source of revenue for the U.S. businesses of Detroit automakers General Motors, Ford, and Stellantis.
According to data from the World Trade Organization, the average trade-weighted tariff rate for the United States is around 2.2%. Hence the rates for countries in the European Union are 2.7%, 6.7%, 5.1%, and 12%, respectively.
