Trump Announces New 25% Tariffs on Steel and Aluminum Imports, Escalating Trade Policy Overhaul
Washington, D.C. – U.S. President Donald Trump revealed plans on Sunday to impose new 25% tariffs on all steel and aluminum imports into the United States, marking a significant escalation in his administration’s trade policy overhaul. The announcement, made aboard Air Force One en route to the NFL Super Bowl in New Orleans, comes on top of existing metals duties and is set to take effect almost immediately.
Reciprocal Tariffs and Global Impact
Trump also announced plans to introduce reciprocal tariffs on Tuesday or Wednesday, targeting all countries and matching their respective tariff rates. “If they charge us, we charge them,” Trump stated, emphasizing the reciprocal nature of the new policy. The tariffs are expected to apply to major U.S. trading partners, including Canada, Brazil, Mexico, South Korea, and Vietnam, which are among the largest sources of steel and aluminum imports to the U.S.
Canada, in particular, plays a critical role as the largest supplier of primary aluminum to the U.S., accounting for 79% of total imports in the first 11 months of 2024. Canadian Innovation Minister François-Philippe Champagne responded on social media, stating, “Canadian steel and aluminum support key industries in the U.S. from defense, shipbuilding, and auto. We will continue to stand up for Canada, our workers, and our industries.”
Steel Industry and Trade Relations
Trump’s announcement also addressed the U.S. steel industry, noting that while Japan’s Nippon Steel would be allowed to invest in U.S. Steel, it would not be permitted to acquire a majority stake. “Tariffs are going to make it very successful again, and I think it has good management,” Trump said of U.S. Steel. Nippon Steel declined to comment on the announcement.
This move follows Trump’s earlier tariffs of 25% on steel and 10% on aluminum during his first term, which initially boosted U.S. steel mill capacity utilization to over 80% in 2019. However, the industry has since faced challenges due to China’s dominance in global steel production, which has driven down prices. A Missouri aluminum smelter, revived by the initial tariffs, was idled last year by Magnitude 7 Metals.
Reactions from Industry and Trade Partners
Kevin Dempsey, president and CEO of the American Iron and Steel Institute (AISI), welcomed Trump’s commitment to strengthening the U.S. steel industry. “We look forward to working closely with the President and his administration to implement a robust and reinvigorated trade agenda to address foreign market-distorting policies,” Dempsey said.
Meanwhile, concerns have been raised about potential retaliatory measures. Chris Swonger, CEO of the Distilled Spirits Council of the United States, warned that the new tariffs could lead the European Union to reimpose 50% tariffs on American whiskey. “A 50% tariff on America’s native spirit will have a catastrophic outcome for the 3,000 small distilleries across the United States,” Swonger said.
Border Security and Tariff Threats
In a separate interview with Fox News, Trump criticized Canada and Mexico for insufficient efforts to secure their borders and halt the flow of drugs and migrants. He threatened to impose 25% tariffs on all imports from the two countries unless stronger actions are taken by March 1. While both nations have made some concessions, including Mexico deploying 10,000 National Guard troops to its border and Canada implementing new anti-fentanyl measures, Trump stated, “No, it’s not good enough. Something has to happen, it’s not sustainable, and I’m changing it.”
Global Trade Implications
The U.S. trade-weighted average tariff rate is approximately 2.2%, significantly lower than rates in countries like India (12%), Brazil (6.7%), and Vietnam (5.1%). Trump has long criticized the EU’s 10% tariff on auto imports, contrasting it with the U.S. rate of 2.5%. He has also highlighted the 25% U.S. tariff on pickup trucks, a key profit source for Detroit automakers.
As the global trade landscape braces for these changes, stakeholders are urging swift resolutions to avoid further economic disruptions. Quebec Premier François Legault emphasized the need for renegotiating the U.S.-Canada free trade agreement, stating, “We must put an end to this uncertainty.”
Trump is expected to hold a news conference on Tuesday or Wednesday to provide further details on the reciprocal tariff plan, which he first hinted at on Friday. The move underscores his administration’s focus on ensuring “that we’re treated evenly with other countries” in global trade.