Washington, D.C. – Former U.S. President Donald Trump has announced plans to impose new 25% tariffs on all steel and aluminum imports into the United States, marking a major escalation in his trade policies. Speaking to reporters aboard Air Force One en route to the NFL Super Bowl in New Orleans, Trump stated that the new tariffs would be officially announced on Monday.
Additionally, he revealed plans for reciprocal tariffs, which will be announced on Tuesday or Wednesday and will take effect almost immediately. Under this policy, tariffs will be applied to all countries, mirroring the rates imposed on U.S. goods by those nations.
Impact on Major Trade Partners
The largest sources of U.S. steel imports include Canada, Brazil, Mexico, South Korea, and Vietnam, while Canada remains the dominant supplier of aluminum, accounting for 79% of total imports in 2024.
Reacting to the announcement, Canadian Innovation Minister Francois-Philippe Champagne emphasized the importance of Canadian steel and aluminum to U.S. industries such as defense, shipbuilding, and automobiles, vowing to protect Canadian workers and industries.
Meanwhile, Quebec Premier Francois Legault warned that these tariffs could push the U.S. to seek alternative suppliers, including China, and called for an early renegotiation of the U.S.-Canada trade agreement instead of waiting for the scheduled 2026 review.
Concerns Over Trade Quotas and Industry Impact
Trump had previously imposed 25% tariffs on steel and 10% on aluminum during his first term but later granted exemptions to Canada, Mexico, and Brazil. His successor, Joe Biden, later introduced duty-free quota arrangements with Britain, the EU, and Japan. It remains unclear how Trump’s new tariffs will affect these existing exemptions.
While Trump claims tariffs will revive U.S. industries, recent trends indicate declining steel prices due to China’s dominance, leading to reduced steel mill capacity usage since 2019.
Border Security Tied to Tariffs on Canada and Mexico
In a Fox News interview, Trump reiterated his March 1 deadline for Canada and Mexico to enhance border security or face 25% tariffs on all imports. He stated that current efforts by both countries, including deploying more troops and adopting new anti-drug measures, were insufficient.
“Something has to happen; it’s not sustainable, and I’m changing it,” Trump declared, without specifying further demands.
Looking Ahead
Trump plans to hold a press conference on Tuesday or Wednesday to provide more details on the reciprocal tariff plan, particularly regarding auto imports from the European Union. The U.S. has long criticized the EU’s 10% tariff on American cars, while maintaining its own 25% tariff on pickup trucks, a key sector for General Motors, Ford, and Stellantis.
With global trade partners on edge, the coming weeks could bring intense negotiations and potential retaliatory measures from major economies.
