Washington, D.C.: Former US President Donald Trump has announced plans to impose new 25% tariffs on all steel and aluminium imports, marking a significant escalation in his trade policy approach. Speaking to reporters aboard Air Force One en route to the NFL Super Bowl in New Orleans, Trump confirmed that the new tariffs would be introduced on Monday, with reciprocal tariffs set to follow on Tuesday or Wednesday.
Under the reciprocal tariff plan, the US will impose equivalent tariffs on countries that impose duties on American goods. “And very simply, if they charge us, we charge them,” Trump said, emphasizing a retaliatory approach to global trade.
Global Reactions and Concerns
The announcement has drawn immediate concern from Canada, a key supplier of steel and aluminium to the US. A Canadian government source told Reuters that Ottawa would wait for further details or an official order before responding. Meanwhile, Japan’s Nippon Steel, which has been eyeing an investment in US Steel, has refrained from commenting on Trump’s latest announcement.
During his first term, Trump had previously imposed 25% tariffs on steel and 10% on aluminium, though exemptions were later granted to key trading partners such as Canada, Mexico, and Brazil. Following his presidency, Joe Biden negotiated duty-free quota arrangements with the UK, the European Union, and Japan. It remains unclear whether Trump’s new tariffs will override these exemptions and quota agreements.
Impact on US Industry and Global Markets
Following Trump’s initial tariffs in 2018, US steel mill capacity utilization surged past 80% in 2019. However, prices have since declined, largely due to China’s dominance in the global steel sector. The impact on the aluminium industry has been equally volatile. In Missouri, an aluminium smelter that was revived following Trump’s tariffs was later idled by Magnitude 7 Metals in 2023.
Data from the American Iron and Steel Institute shows that the largest steel suppliers to the US are Canada, Brazil, and Mexico, followed by South Korea and Vietnam. Canada, benefiting from its hydropower resources, remains the largest supplier of primary aluminium, contributing 79% of total US aluminium imports as of the first 11 months of 2024. Mexico, on the other hand, is a key provider of aluminium scrap and alloys.
Political and Trade Agreement Implications
Trump’s latest move has raised concerns about the future of the US-Canada-Mexico trade relationship. Quebec’s Premier François Legault voiced strong opposition, highlighting that Quebec exports 2.9 million tonnes of aluminium to the US—about 60% of its total supply. He criticized the potential impact on North American trade, stating:
“The Trump administration is threatening the aluminium and steel sectors—industries where the US is largely dependent on imports. Do they prefer to rely on China instead?”
Legault also called for an early renegotiation of the US-Mexico-Canada Agreement (USMCA), rather than waiting for the planned review in 2026, citing the need to end uncertainty for businesses and industries.
Looking Ahead
As Trump prepares to officially announce the tariffs, analysts expect strong opposition from trading partners, with potential countermeasures from Canada, the European Union, and Japan. The move is also likely to reignite trade tensions with China and reshape the global steel and aluminium markets in the coming months.
