On Sunday, President Donald Trump announced plans to impose new 25% tariffs on all steel and aluminum imports to the U.S., adding to existing metal duties in a major escalation of his trade policy. Speaking to reporters aboard Air Force One en route to the NFL Super Bowl in New Orleans, Trump stated that he would formally announce the tariffs on Monday, emphasizing that they would apply to “everybody.” “Any steel entering the United States will face a 25% tariff, and the same goes for aluminum,” he added.
The new tariffs would be on top of hefty existing metals duties imposed in March and could further escalate tensions with China, which has already launched retaliatory duties targeting $14 billion worth of products. The tariffs have increased costs for car firms, which use a lot of steel in their vehicles, and makers of fizzy drinks, who use aluminium for cans. Those higher costs are typically passed on to consumers.
In a tweet on Sunday, Doug Ford, the premier of Canada’s Ontario province, accused Trump of “shifting goalposts and constant chaos, putting our economy at risk.” The majority of Canada’s steel production is concentrated in the province. “Tariffs are bad for Canada, a major trading partner,” Ford wrote.
White House aides say the administration will also announce reciprocal tariffs on Tuesday or Wednesday, directed at countries that impose duties on US exports. During his first term, Trump imposed 25% tariffs on steel and 10% on aluminum but later granted several trading partners duty-free quotas, including Canada, Mexico, and Brazil. Former President Joe Biden then negotiated duty-free quota arrangements with Britain, Japan, and the European Union. Still, steel mill capacity utilization in the United States has dropped recently.
Investors appeared unconvinced by the Trump announcement, with stock prices declining and a measure of consumer sentiment falling on Friday as worries about higher inflation and tariffs rose. The tariffs have also prompted pushback from foreign leaders, with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum denouncing the new US penalties.
A White House official said the new trade memo, due to be released on Monday, would single out China and its trading partners for special scrutiny. The memo will also direct agencies to investigate and remedy persistent trade deficits and address unfair trade and currency practices by other nations.
The new tariffs would be the latest chapter in a months-long battle between the United States and some of its largest trading partners over Beijing’s alleged misappropriation of American technology. While many of these disputes have been triggered by national security concerns, the Trump administration has primarily pursued a more punitive approach. This has triggered fears of a global trade war, with retaliatory tariffs now being launched by many trading partners. China’s retaliatory measures, which began last week, target $14 billion of imported goods.
