In a significant escalation of his trade policy, US President Donald Trump announced that the United States will impose 25% tariffs on all steel and aluminium imports starting Monday. Speaking aboard Air Force One en route to the Super Bowl in New Orleans, Trump also revealed plans for reciprocal tariffs, set to be detailed on Tuesday.
Under this new policy, the US will match tariff rates imposed by other nations. "If they charge us, we charge them," Trump stated, without specifying which countries would be affected. The move is expected to reshape global trade dynamics, particularly for key US trading partners.
During his first term (2016-2020), Trump imposed similar tariffs but later introduced duty-free quotas for Canada, Mexico, and Brazil. His successor, Joe Biden, extended these exemptions to Britain, Japan, and the European Union. However, US steel mill capacity utilization has since declined.
According to official data, Canada, Brazil, and Mexico are the largest suppliers of US steel, followed by South Korea and Vietnam. Canada remains the dominant supplier of primary aluminium, accounting for 79% of total US imports in 2024, while Mexico plays a key role in aluminium scrap and alloy supply.
Trump’s tariff push comes amid ongoing complaints about the European Union’s 10% tariff on US auto imports, far higher than the 2.5% American duty on European cars. The US, however, maintains a 25% tariff on pickup trucks, benefiting Detroit automakers like General Motors and Ford.
With the global trade landscape already fraught with tension, Trump's latest move signals a new phase in US trade policy, with potential economic ripples worldwide. A formal announcement is expected by midweek.