U.S. President Donald Trump announced on Sunday that he would implement new 25% tariffs on all steel and aluminum imports into the U.S., in addition to existing duties, escalating his trade policy overhaul.
Speaking aboard Air Force One while en route to the NFL Super Bowl in New Orleans, Trump said he would formally announce the new metals tariffs on Monday.
Trump also revealed plans to announce reciprocal tariffs on Tuesday or Wednesday, which would apply to all countries and mirror the tariff rates imposed by each country on U.S. goods.
“And very simply, it’s, if they charge us, we charge them,” Trump explained regarding the reciprocal tariff approach.
Canada, Brazil, and Mexico are the largest sources of U.S. steel imports, followed by South Korea and Vietnam, according to data from the U.S. government and the American Iron and Steel Institute.
Canada, rich in hydropower, is the largest supplier of primary aluminum metal to the U.S., accounting for 79% of aluminum imports in the first 11 months of 2024.
Canadian Innovation Minister Francois-Philippe Champagne emphasized on X that Canadian steel and aluminum support critical U.S. industries, such as defense, shipbuilding, and automotive, and pledged continued support for Canada’s workers and industries.
Trump also stated that the U.S. government would allow Japan’s Nippon Steel to invest in U.S. Steel but insisted that it would not be allowed to acquire a majority stake.
Former President Joe Biden had negotiated duty-free quota arrangements with the EU, Britain, and Japan, but it was unclear what impact Trump’s announcement would have on those agreements.
Quebec Premier Francois Legault argued that the U.S. should not seek aluminum supplies from China and called for a renegotiation of the North American Free Trade Agreement to address the uncertainty surrounding U.S. tariffs.
After Trump’s initial tariffs in 2019, U.S. steel mill capacity usage surged above 80%, though it has since declined due to China’s dominance in the global steel market, which has led to lower prices.
Trump indicated that he would hold a news conference on Tuesday or Wednesday to provide further details on the reciprocal tariff plan.
Trump has long criticized the EU’s 10% tariffs on U.S. auto imports, especially compared to the U.S. 2.5% tariff on European cars, while noting that Europe ships millions of cars to the U.S. each year.
The U.S. enjoys a 25% tariff on pickup trucks, which are a major source of profits for Detroit automakers like General Motors, Ford, and Stellantis.
According to World Trade Organization data, the U.S. trade-weighted average tariff rate is around 2.2%, whereas India, Brazil, Vietnam, and EU countries have higher rates.
In a separate interview, Trump criticized Canada and Mexico for not doing enough to secure their U.S. borders and prevent the flow of drugs and migrants, ahead of a 1st of March tariff deadline.
Trump has threatened to impose 25% tariffs on all Mexican and Canadian imports unless both countries take stronger actions to secure their borders, though he paused the tariffs after initial concessions from both nations.
Trump expressed dissatisfaction with the progress made by Canada and Mexico, stating, “No, it’s not good enough,” and emphasized the need for change to ensure sustainable border security.
