US President Donald Trump announced on Sunday that the United States will impose a 25% tariff on all steel and aluminum imports starting Monday.
This move escalates his administration's trade policy overhaul, which has focused on increasing tariffs to protect domestic industries.
Trump revealed the new tariffs while aboard Air Force One, en route to the NFL Super Bowl in New Orleans.
He emphasized that the steel and aluminum tariffs will apply to all countries, including major US trade partners like Canada and Mexico.
In addition, Trump confirmed plans to introduce "reciprocal tariffs" by Tuesday or Wednesday, meaning the US would match the tariff rates levied by other countries on American products, MarketWatch said.
"If they are charging us 130 percent and we're charging them nothing, it's not going to stay that way," Trump said.
Canada is the largest supplier of aluminum to the US, accounting for 79% of total imports in 2024.
Trump's New Tariffs May Shake Up Trade Deals with Canada and Mexico
Many Canadian leaders, including Canadian Innovation Minister Francois-Philippe Champagne, have defended the trade relationship, noting that US industries like defense and shipbuilding rely on Canadian steel and aluminum.
According to Reuters, the new tariffs build on Trump's previous measures, which imposed 25% tariffs on steel and 10% on aluminum during his first term.
However, Trump later granted several trading partners, including Canada, Mexico, and Brazil, duty-free exemptions. It remains unclear what will happen to these exemptions under the new policy.
Trump's latest tariff announcement comes as part of his broader effort to tackle the US trade deficit and protect domestic manufacturing.
He also plans to address "reciprocal tariffs" with foreign nations, aligning US duties with those imposed by other countries on American goods.
Markets reacted negatively to the tariff announcements, with stock prices declining and concerns rising about the potential inflationary effects.
The new tariffs, which are part of Trump's ongoing trade strategy, are likely to create significant uncertainty in international trade.
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