President Donald Trump is set to introduce new 25% tariffs on all steel and aluminum imports into the United States, further escalating tensions in global trade.
The announcement, expected on Monday, will add to the existing duties on metal imports and could lead to retaliatory measures from key trading partners.
The European Union has already signaled the possibility of countermeasures, while Trump has indicated that additional reciprocal tariffs could follow as early as Tuesday or Wednesday.
The stock market reacted swiftly to the news, with shares of U.S. steel and aluminum producers surging. Nucor and U.S. Steel saw gains of between 4% and 7%, Cleveland-Cliffs jumped 15%, Century Aluminum climbed 13%, and Alcoa rose by 4%.
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Meanwhile, steel manufacturers in Europe and Asia experienced declines, reflecting concerns about the broader impact of these tariffs on global trade.
Speaking to reporters aboard Air Force One on his way to the Super Bowl in New Orleans, Trump justified the tariffs as a necessary response to trade imbalances, stating, “If they charge us, we charge them.” His administration has long argued that these measures are essential to protecting American industries from unfair competition.
The countries most affected by the new tariffs include Brazil, Canada, Mexico, South Korea, and Vietnam, which are among the largest suppliers of steel to the U.S. Canada, which benefits from extensive hydropower resources for metal production, accounted for 79% of U.S. primary aluminum imports in the first 11 months of 2024.
Given its heavy reliance on aluminum exports to the U.S., Canada may be particularly impacted by this policy shift. This latest move continues a pattern from Trump’s first term, during which he imposed 25% tariffs on steel and 10% on aluminum.
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