Trump Announces New 25% Steel and Aluminium Tariffs

President Donald Trump has announced that the United States will impose a 25% tariff on all steel and aluminium imports, including those from Canada and Mexico. Speaking to reporters aboard Air Force One, Trump confirmed that the new tariffs would be formally announced on Monday. "Any steel coming into the United States is going to have a 25% tariff," he said on Sunday. When asked about aluminium, he added that it will also be subject to the tariff. 

This decision is yet another escalation in Trump’s trade policies, which have already led to retaliatory measures from China. The president also revealed plans for reciprocal tariffs on countries that impose duties on US goods, stating, "If they charge us, we charge them." These countermeasures are expected to be detailed later in the week and will likely match the existing tariffs imposed by other nations.  

Countries respond to the new tariffs

The announcement has sparked immediate reactions from key US trading partners. Canada, the top supplier of both steel and aluminium to the US, has voiced strong opposition to the tariff. Ontario Premier Doug Ford accused Trump of “shifting goalposts and constant chaos, putting our economy at risk." Canada’s Minister of Innovation, Francois-Philippe Champagne, defended Canadian steel and aluminium, saying they support critical industries in the US, including defense and auto manufacturing.  

Australian Prime Minister Anthony Albanese has also responded, stating that his government would push for an exemption from the tariffs, similar to the one Australia secured during Trump's first term. Australian Trade Minister Don Farrell emphasized that Australian steel and aluminium support thousands of American jobs and are essential for defense cooperation.  

South Korea, another major exporter of steel to the US, saw shares in its steel and automobile industries drop following Trump's announcement, and the European Union, which Trump has previously criticized for trade imbalances, is also bracing for potential tariffs. German Chancellor Olaf Scholz has warned that the EU is prepared to retaliate "within an hour" if the US targets European goods.  

China, which has already imposed its own set of tariffs on US goods, has condemned Trump's latest move. A Chinese government spokesperson stated, “There are no winners in a trade war or tariff battle. What is harmed are the interests of the people of both countries." Beijing recently introduced restrictions on rare metal exports, which has been seen as a direct response to US actions limiting Chinese access to semiconductor technology.  

Despite criticism from global leaders and economic experts, Trump remains firm in his belief that tariffs will benefit the US economy. He has argued that they will protect American jobs, boost domestic steel production, and generate tax revenue. However, critics warn that these measures could disrupt supply chains, increase costs for US businesses, and trigger further retaliatory actions.  

“Gulf of America Day”

Alongside his trade policies, Trump made headlines with other statements during his flight. He signed a proclamation designating February 9th as "Gulf of America Day," following his controversial order renaming the Gulf of Mexico. He also reiterated his belief that Canada would be better off as the “51st state,” using a $200 billion trade deficit as justification for his belief.  

As Trump moves forward with his tariff plans, global markets remain on edge, and affected nations are preparing their responses. With reciprocal tariffs expected to take effect almost immediately, trade tensions between the US and its allies are likely to escalate in the coming weeks.