Washington: President Donald Trump has revealed plans to impose a 25% tariff on all steel and aluminum imports into the United States. Aboard Air Force One on Sunday, Trump confirmed that he would announce the new tariffs on Monday.
“We’ll also be announcing steel tariffs on Monday,” Trump said, adding, “Any steel coming into the United States is going to have a 25% tariff.” He later confirmed that aluminum imports would face the same tariff increase.
More Tariffs on the Horizon
Trump also hinted at a broader trade policy shift. He said he plans a major news conference for Tuesday or Wednesday, where he will announce additional reciprocal tariffs. These tariffs could match the import taxes that other countries place on American goods, potentially leading to higher costs for foreign products entering the U.S.
“Very simply, it’s if they charge us, we charge them,” Trump explained, without providing details on the scope and timing of the tariffs.
Tariff History and Economic Impact
This is not Trump’s first move on trade tariffs. In 2018, during his presidency, he imposed a 25% tariff on steel and a 10% tariff on aluminum. However, those tariffs were later lifted for Mexico and Canada in 2019.
Last week, Trump imposed a 10% tariff on all Chinese goods, adding to existing trade restrictions. China quickly responded by placing tariffs on U.S. exports, launching an investigation into Google, and targeting companies like Calvin Klein and Tommy Hilfiger.
Trump has already softened some of these measures, pausing tariffs on goods valued at $800 or less while the Commerce Department works on a system to track small imports. Additionally, broad tariffs on Mexican and Canadian imports have been delayed until at least March 1.
Potential Industry Impact
The U.S. may no longer be a manufacturing-dominant economy, but industries like automaking, aerospace, oil production, and construction rely heavily on steel and aluminum. The new tariffs would raise costs in these sectors by increasing import prices and allowing domestic producers to charge more due to reduced competition.
Canada and Mexico are major steel exporters to the U.S., ranking first and third, respectively. Canada supplies 25% of all imported steel, while Mexico provides 12%, according to the American Iron and Steel Institute.
Steel Imports and Domestic Production
Since Trump’s 2018 tariffs, steel imports by U.S. businesses have dropped 27%. Domestic steel production rose initially but failed to fully offset the decline in imports. Despite some benefits to U.S. steelmakers, domestic production was still 2% lower last year than in 2023, and 10% lower compared to a decade ago.
With new tariffs looming, industries and global trade partners are bracing for economic uncertainty. The full impact will depend on how other countries respond and whether these tariffs become permanent or part of a broader negotiation strategy.
