US President Donald Trump announced new 25% tariffs on all steel and aluminium imports into the country, marking a significant escalation in his trade policy. Speaking to reporters aboard Air Force One en route to the NFL Super Bowl, Trump revealed that the official announcement will come on Monday.
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Furthermore, reciprocal tariffs matching those levied by other countries are planned, with details expected by midweek. “And very simply, it’s, if they charge us, we charge them,” Trump stated, outlining his strategy.
Canada, Brazil, and Mexico are the largest sources of US steel imports, with Canada also being a key supplier of primary aluminium. South Korea and Vietnam are also large sources of steel for the US. Canadian officials have expressed concern over the potential impact of these tariffs on vital US industries, emphasising the importance of renegotiating trade agreements. “Canadian steel and aluminium support key industries in the US from defence, shipbuilding and auto,” stated Canadian Innovation Minister Francois-Philippe Champagne.
Australia is seeking an exemption from these planned tariffs, highlighting the significant role Australian steel and aluminium play in creating “good paying American jobs” and supporting defence interests. Australian Trade Minister Don Farrell has advocated for “free and fair trade, including access into the US market for Australian steel and aluminium,” as discussions with the Trump administration continue.
New Tariffs Raise
Trump had imposed 25 per cent tariffs on steel and 10 per cent on aluminium in his first term too. However, the new tariffs raise questions about existing duty-free exemptions and quota arrangements negotiated by the previous administration. Former President Joe Biden had secured duty-free quota arrangements with countries such as Britain, the European Union, and Japan.
However, it remains unclear how these will be affected by the new policies. “Quebec exports 2.9 million tons of aluminium to (the US), that is, 60 per cent of their needs,” noted Francois Legault, Premier of Quebec, stressing the need for renegotiation.
Trump has also criticised the European Union’s tariffs on auto imports, which he states are significantly higher than those imposed by the US. While the US has a 25 per cent tariff on pickup trucks – benefiting automakers like General Motors and Ford – the EU’s tariffs remain a point of contention.
As Trump pushes for changes, he has indicated that current measures by Canada and Mexico on border security are insufficient, signalling potential further tariffs unless actions are taken. “No, it’s not good enough,” Trump commented on the current efforts.
