The United States will impose new 25% tariffs on all imported steel and aluminum starting Monday, affecting major trading partners, including Canada and Mexico, President Donald Trump announced. The move marks a significant escalation in his trade policy, with China already responding with retaliatory measures.
Speaking to reporters aboard Air Force One on Sunday, Trump hinted at additional reciprocal tariffs to be announced by Tuesday or Wednesday, aiming to align U.S. tariff rates with those of its trade partners.
“If they charge us, we will charge them,” Trump stated, signaling swift implementation of the measures.
International Reactions and Economic Impact
The European Union has yet to receive official notification of the tariffs but has warned it will “act to protect its interests” if Trump proceeds. French President Emmanuel Macron criticized the decision, arguing it could fuel inflation in the U.S.
Canada’s Ontario Premier Doug Ford condemned the move, calling it “goalpost shifting and chaos that threatens the economy.” Canada, Brazil, and Mexico are the largest steel exporters to the U.S., while Canada supplies 79% of U.S. primary aluminum imports.
China has already retaliated, imposing 15% tariffs on American coal and liquefied natural gas (LNG), 10% on crude oil, and launching investigations into U.S. firms, including Google.
Market Reactions
Financial markets reacted cautiously, with gold prices rising over 1% to a record $2,896 per ounce, while aluminum prices climbed 0.3% to $2,635 per ton.
Trump’s tariff strategy mirrors his 2018 policy when he imposed similar steel and aluminum duties, later softened through tariff-free quotas for Canada, Mexico, and Brazil. The Biden administration had expanded these exemptions to the UK, Japan, and the EU.
Beyond metals, Trump also hinted at potential tariffs on Taiwan’s semiconductor industry, which he accused—without evidence—of “stealing American business.” Taiwanese officials are set to travel to Washington this week in an effort to prevent trade barriers.
The long-term impact of these tariffs remains uncertain, as global trade partners weigh possible countermeasures.
