Trump set to announce 25% steel and aluminium tariffs in latest trade salvo

ABOARD AIR FORCE ONE/SEOUL/FRANKFURT: President Donald Trump is expected to introduce new 25% tariffs later on Monday on all steel and aluminium imports into the US, on top of existing metals duties, in another major escalation of his shake-up of trade policy.

As the risk mounts of a multi-front trade war, the European Union flagged it may retaliate and Trump promised further announcements on Tuesday or Wednesday of broader reciprocal tariffs to match those of countries importing US goods.

Shares in European and Asian steelmakers fell while their US counterparts rose.

Speaking to reporters on Air Force One on his way to Sunday’s NFL Super Bowl in New Orleans, Trump said he would announce the metals tariffs on Monday and the reciprocal tariffs soon afterwards, adding “if they charge us, we charge them.”

The largest sources of US steel imports are Brazil, Canada and Mexico, followed by South Korea and Vietnam, according to government and American Iron and Steel Institute data.
Meanwhile, Canada, whose extensive hydropower resources aid its metal production, accounted for 79% of U.S. primary aluminium imports in the first 11 months of 2024.

During his first four-year term from 2017, Trump imposed tariffs of 25% on steel and 10% on aluminium.

But he later granted several countries exemptions, including Australia, Brazil, Canada and Mexico, and his successor Joe Biden later negotiated duty-free quota deals with Britain, Japan and the EU.

With more demands for exemption and negotiation in prospect, some said Trump’s action would first of all damage the U.S. economy by raising the cost of the raw materials it depends on.

“Canadian steel and aluminum support key industries in the US from defence, shipbuilding and auto,” Canadian Innovation Minister Francois-Philippe Champagne posted on X.

“We will continue to stand up for Canada, our workers, and our industries.”
Australia, also a strategic U.S. ally, has been making representations on aluminium and steel for months.

“Australian steel and aluminium are creating thousands of good paying American jobs, and are key for our shared defence interests,” Trade Minister Don Farrell said.