- Trump to announce new steel, aluminium tariffs today
- Importers to pay 25 per cent on top of existing steel, aluminium tariffs
- Fate prior metals tariff exemptions for Mexico, Canada unclear
- Trump says US reciprocal tariffs to match other countries’ rates
ABOARD AIR FORCE ONE, Feb 10 — US President Donald Trump said yesterday he will introduce new 25 per cent tariffs on all steel and aluminium imports into the US, on top of existing metals duties, in another major escalation of his trade policy overhaul.
Trump, speaking to reporters on Air Force One on his way to the NFL Super Bowl in New Orleans, said he will announce the new metals tariffs today.
He also said he will announce reciprocal tariffs tomorrow or Wednesday, to take effect almost immediately, 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.
A Canadian government source told Reuters that Ottawa would not react to Trump’s steel and aluminium tariff announcement until it has more information or sees a written order from Trump.
Trump also said that while the US government would allow Japan’s Nippon Steel to invest in US Steel, it would not allow this 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 declined to comment on the latest announcements from Trump.
Quota questions
Trump during his first term imposed tariffs of 25 per cent on steel and 10 per cent on aluminium, but later granted several trading partners duty-free exemptions, including Canada, Mexico and Brazil.
Former President Joe Biden later negotiated duty-free quota arrangements with Britain, the European Union and Japan. It was not immediately clear from Trump’s announcement what will happen to those exemptions and quota arrangements.
Steel mill capacity usage jumped to levels above 80 per cent in 2019 after Trump’s initial tariffs, but has fallen since then as China’s global dominance of the sector has pushed down steel prices. A Missouri aluminium smelter revived by the tariffs was idled last year by Magnitude 7 Metals.
According to government and American Iron and Steel Institute data, the largest sources of US steel imports are Canada, Brazil and Mexico, followed by South Korea and Vietnam.
By a large margin, hydro power-rich Canada is the largest supplier of primary aluminium metal to the United States, accounting for 79 per cent of total imports in the first 11 months of 2024. Mexico is a major supplier of aluminium scrap and aluminium alloy.
“The Trump administration is threatening to attack the aluminium and steel sectors — sectors where the United States depends largely (on others). Quebec exports 2.9 million tons of aluminium to them, that is, 60 per cent of their needs. Do they prefer to get supplies from China?” Francois Legault, premier of Quebec — a major aluminium supplier, 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.”
Matching rates
Trump said he would hold a news conference tomorrow 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 long 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 frequently 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 Organisation 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.
Border steps
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 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.
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. — Reuters
