President Donald Trump announced a 25% tariff on all steel and aluminum imports, beginning Monday, in a move that could disrupt global trade and spark swift retaliation from United States allies.
“Any steel coming into the United States is going to have a 25% tariff,” Trump told reporters on Sunday while flying on Air Force One to the Super Bowl.
“Aluminum, too.”
Canada, Mexico, Brazil, South Korea, and Vietnam are among the top steel suppliers to the U.S., according to the American Iron and Steel Institute.
The Aluminum Association said the U.S. relies on Canada for about two-thirds of its primary aluminum.
Trump also announced he will introduce reciprocal tariffs on other U.S. trading partners this week.
“Very simply, if they charge us, we charge them,” said Trump, adding those measures would take effect “almost immediately.”
This is not the first time Trump has threatened tariffs on steel and aluminum.
In Trump’s first term in 2018, he imposed levies on steel and aluminum imports.
Canada and other allies retaliated with their own tariffs before a deal in 2019 lifted the measures for Canada and Mexico.
Some American steel producers praised the earlier tariffs, but many U.S. manufacturers complained they increased costs.
Canadian Innovation, Science, and Industry Minister François-Philippe Champagne said on Twitter/X that Canadian steel and aluminum support key U.S. industries, including defence, shipbuilding, and automotive.
“Let’s all be clear. Canadian steel and aluminum support key industries in the U.S., from defence, shipbuilding, and auto,” tweeted Champagne.
“This is making North America more competitive and secure. We will continue to stand up for Canada, our workers, and our industries.”
The Canadian Steel Producers Association (CSPA) warned that the new tariffs would devastate the sector and called for immediate retaliation.
"We are deeply concerned that US President Donald Trump is again threatening more tariffs on Canada, this time directly targeting the steel and aluminum sectors. While the details remain unclear, we will analyze the President's order once it is released and have more to say at that time,” said Catherine Cobden, President and CEO of the CSPA.
"When President Trump implemented tariffs on Canadian steel in 2018, we saw massive disruptions and harm on both sides of the border, hurting both America and Canada. The Canada-US economy is so highly integrated; with $20B in trade of steel between our two countries. 40% of Canada's steel imports come from the United States.”
Trade experts say that the president’s plan to adopt a reciprocal tariff system could violate World Trade Organization rules, which require member countries to provide the same tariff rates to all partners.
“Moving away from what is known as ‘unconditional MFN’ [most favoured nation] where each WTO member pledges to give to every other member the lowest rate they offer to any country is the biggest change in global trade since 1947,” said John Veroneau, a partner at Covington and Burling law firm in Washington, D.C.
