Key points:
- Levies to come on top of existing metal duties
- New metals tariffs to be announced on Monday: Trump
- Reciprocal tariffs likely by Tuesday or Wednesday
ISLAMABAD: President Donald Trump said on Sunday that he will introduce 25 per cent tariffs on all steel and aluminium imports into the US, on top of existing metals duties, in yet another big escalation of his trade war.
Speaking to reporters on Air Force One on his way to the NFL Super Bowl in New Orleans, Trump said he will announce the new metals tariffs on Monday, according to Sky News.
He also said the US to announce reciprocal tariffs on Tuesday or Wednesday, to take effect almost directly, applying them to all countries and matching the tariff rates levied by each country.
“And very simply, it’s, if they charge us, we charge them,” Trump said of the reciprocal tariff plan.
Steel imports
The biggest sources of US steel imports are Canada, Brazil, and Mexico. They are followed by South Korea and Vietnam, according to government and American Iron and Steel Institute data.
And very simply, it’s, if they charge us, we charge them,” Trump said of the reciprocal tariff plan.
By a huge margin, hydropower-rich Canada is the largest provider of primary aluminium metal to the US, accounting for 79 per cent of total imports in the first 11 months of 2024.
“Canadian steel and aluminum support key industries in the US from defence, shipbuilding, and auto,” Canadian Innovation Minister Francois-Philippe Champagne posted on X, reports Reuters.
“We will continue to stand up for Canada, our workers, and our industries.”
On Nippon Steel
Trump also said that while the US government would allow Japan’s Nippon Steel to invest in US Steel, it would not allow the company to become a majority stake.
“Tariffs are going to make it very successful again, and I think it has good management,” Trump said of US Steel.
Nippon Steel denied to comment on the latest announcements from Trump.
Trump, during his first term, imposed tariffs of 25 per cent on steel and 10 per cent on aluminum, however, later granted several trading partners duty-free exemptions, including Canada, Mexico, and Brazil. Mexico is a big supplier of aluminum scrap and aluminum alloy.
Later, Former President Joe Biden negotiated duty-free quota arrangements with Britain, the European Union, and Japan. It was not directly clear from Trump’s announcement what would happen to those exemptions and quota arrangements.
Quebec exports
“Quebec exports 2.9 million tons of aluminum to (the US), that is, 60 per cent of their needs. Do they prefer to get supplies from China?” Francois Legault, premier of Quebec, said on X.
“All this shows that we must begin to renegotiate our free trade agreement with the United States as soon as possible and not wait for the review planned for 2026. We must put an end to this uncertainty,” according to
Steel mill capacity usage surged to levels above 80 per cent in 2019 after Trump’s initial tariffs, however, has fallen since then as China’s global dominance of the sector has pushed down steel prices. A Missouri aluminum smelter revived by the tariffs was idled last year by Magnitude 7 Metals.
Reciprocal tariff plan
Trump said he would hold a news conference on Tuesday or Wednesday to provide detailed information on the reciprocal tariff plan, adding that he first revealed on Friday that he was planning reciprocal tariffs to ensure “that we’re treated evenly with other countries.”
The new US president has always complained about the EU’s 10 per cent tariffs on auto imports being much higher than the US car rate of 2.5 per cent. He mostly states that Europe “won’t take our cars” but ships millions west across the Atlantic every year.
The US, however, enjoys a 25 per cent tariff on pickup trucks, a vital source of profits for Detroit automakers General Motors, Ford, and Stellantis’ US operations.
The US trade-weighted average tariff rate is about 2.2 per cent, according to World Trade Organization data, compared to 12 per cent for India, 6.7 per cent for Brazil, 5.1 per cent for Vietnam and 2.7 per cent for European Union countries.
In a separate Fox News interview, Trump said Canada’s and Mexico’s actions to secure their US borders and halt the flow of drugs and migrants are insufficient ahead of a March 1 tariff deadline.
Trump’s threat
Trump has threatened to impose tariffs of 25 per cent on all Mexican and Canadian imports unless America’s two largest trading partners take stronger actions. He paused the tariffs until March 1 after some initial border security concessions from the two countries, with Mexico pledging to add 10,000 National Guard troops to its border and Canada deploying new technology and personnel and taking new anti-fentanyl steps, according to Arab News.
Asked whether Mexico’s and Canada’s actions were good enough, Trump replied: “No, it’s not good enough,” Trump said. “Something has to happen, it’s not sustainable, and I’m changing it.”
Trump did not say what Canada and Mexico needed to do to avoid broad tariffs on March 1. With input from AFP
