Trump unleashes 25% tariffs on all steel, aluminium imports, Trudeau in Shock
President Donald Trump on Monday unleashed 25 percent tariffs on all steel and aluminium imports, a move that could heighten tensions with U.S. trading partners like Canada, Mexico and Brazil.
Canada, the biggest supplier of steel and aluminium to the United States exports around USD 35 billion of these two items to USA.
As the sources of U.S. steel imports in 2024, official data showed Canada was followed by Brazil, Mexico, South Korea, Vietnam and Japan.
Even India exports nearly INR 8500 Crores ( 1 billion USD ) of these products every year to USA. Chinese direct export of these two items are just 1.8% of total steel& aluminium import by USA.
However China the biggest producer of steel exports it to Canada and others, who in turn value add and re export to USA.
This move has also set off a renewed bout of inflation in USA itself.
It was Trump’s first order for the imposition of sector-based tariffs since he returned to the White House on Jan. 20 for a non-consecutive second term.
He said there were no exceptions and the tariffs, due to go into effect on March 4, will be applied to all steel and aluminium imports no matter where they come from.
While concerns have been raised over potential business disruptions and downside risks to the global economy, Trump told reporters in the Oval Office, “We’ll bring back industries and we’ll bring back our jobs, and we’ll make America industry great again.”
In addition to formally announcing the 25 percent tariffs, which Trump first mentioned Sunday, he suggested many other sector-based levies are in the pipeline.
Trump said he and his team will be discussing different targets over the next four weeks, including cars, pharmaceuticals and semiconductors.
He said the auto sector was a “very important one,” without elaborating.
In 2018, during his first presidency, Trump imposed tariffs of 25 percent on steel and 10 percent on aluminium, citing national security as justification.
But Canada and Mexico, which have a free trade agreement with the United States, as well as Australia, were later exempted and several other trading partners, such as the European Union and Japan were granted duty-free quotas.
On Monday, Trump signed proclamations removing the exceptions that continued throughout his predecessor Joe Biden’s term and lifting the tariff rate on aluminium to 25 percent.
This time, Trump’s blanket 25 percent tariffs would hit some of his country’s major trading partners and allies.
Trump has said he will announce detailed information on broader reciprocal tariffs applying to all trading partners on Tuesday or Wednesday, and the levies are expected to take effect almost immediately.
The reciprocal tariffs Trump has promised would raise the import taxes the United States charges on certain products to match what other countries impose on U.S. goods crossing their borders.
The wave of tariffs comes after Trump paused the imposition of 25 percent levies on goods from Canada and Mexico less than a week ago, just hours before the measures were due to go into effect.
The last-minute decisions were made after the two U.S. continental neighbours agreed to strengthen efforts to combat illegal migration and fentanyl smuggling.
But a 10 percent additional tariff on goods from China went into effect as scheduled on Feb. 4. In return, China on Monday imposed new tariffs of up to 15 percent on liquefied natural gas, agricultural equipment and some other select imports from the United States.
