President Donald Trump announced that the United States will impose 25% tariffs on all steel and aluminum imports, including from Canada, Mexico, South Korea, and the European Union, starting Monday. The move marks a significant escalation in U.S. trade policy, with additional reciprocal tariffs on other goods set to be unveiled later this week.
Trump’s decision to increase import duties comes as part of his broader effort to revise global trade relationships and protect U.S. industries. The tariffs are expected to impact key trading partners while drawing concerns over potential retaliation, rising costs for manufacturers, and possible economic disruptions.
Steel and aluminum tariffs to take effect immediately
The 25% tariffs on steel and aluminum will apply across all countries, without exemptions for historical allies such as Canada and Mexico. Trump confirmed the measure while speaking to reporters aboard Air Force One on Sunday, emphasizing that his administration seeks to rebalance trade terms.
“Any steel coming into the United States is going to have a 25% tariff,” he stated, later confirming that aluminum imports would also face the same duty. The decision affects some of the largest suppliers to the U.S. market. Canada, which provided nearly 79% of U.S. aluminum imports in the first 11 months of 2024, will be significantly impacted. Other top exporters of steel include Brazil, Mexico, South Korea, and Vietnam.
Economic repercussions are already being felt. The announcement led to a decline in global stock markets, with shares of major steel producers, including South Korea’s POSCO and Hyundai Steel, dropping on Monday. South Korea’s trade ministry held an emergency meeting to assess the impact, while European and Canadian officials voiced concerns over economic consequences.
Reciprocal tariffs set to heighten trade tensions
Alongside the steel and aluminum duties, Trump confirmed plans for reciprocal tariffs, which would impose import duties equal to those levied on U.S. exports by other countries. “If they charge us, we charge them,” he said, suggesting a shift toward bilateral trade confrontations.
The scope of these tariffs remains unclear, but industries ranging from automobiles to consumer goods could be affected. Trump has frequently criticized Europe’s 10% tariff on U.S. car imports, compared to the 2.5% duty on European vehicles entering the U.S. The new policy could escalate tensions with key economies, including the European Union, China, and Japan.
Industry leaders have warned of broader economic consequences. Kevin Dempsey, CEO of the American Iron and Steel Institute, supported the move but acknowledged that rising costs for manufacturers and potential retaliation from trade partners could create new economic challenges.
