UPDATE:

In a significant escalation of his trade policy, US President Donald Trump announced on Sunday that the United States will impose a 25% tariff on all steel and aluminium imports.

Trump signed the tariff orders on Wednesday, freezing it into place. While signing it in the oval office he remarked, “This is a big deal, the beginning of making America rich again.” These tariffs are set to go into effect on March 12, according to white house officials. These are global import tariffs that US has implemented and will be applicable to all steel and aluminium imports, irrespective of the country of origin.

Speaking to reporters aboard Air Force One on his way to New Orleans for the NFL Super Bowl on Sunday, Trump confirmed that both steel and aluminium imports will face the 25% tariff. He also hinted at the introduction of reciprocal tariffs, which would be unveiled on Tuesday or Wednesday. These tariffs would apply to any country that imposes tariffs on US goods, essentially matching the tariff rates imposed on American products. “If they charge us, we charge them,” Trump emphasized, indicating that the US would apply this principle globally.

During his first term in office, Trump had already imposed a 25% tariff on steel and a 10% tariff on aluminium. However, he later granted several trading partners, including Canada, Mexico, and Brazil, exemptions from these duties. The new tariffs, while targeting steel and aluminium imports globally, have prompted questions about the fate of previous exemptions, particularly those granted to key allies like Canada and Mexico.

Canada is the largest supplier of aluminium to the US, accounting for 79% of the country’s aluminium imports, while Mexico is a major source of aluminium scrap and alloys. Together with Brazil, these countries have historically been the largest sources of US steel imports. The imposition of these tariffs will significantly impact industries in both Canada and Mexico, which rely heavily on exporting metals to the United States.

In addition to the metal tariffs, Trump has recently introduced tariffs on Chinese imports, and he has also postponed tariffs on small packages of fast-fashion companies like Temu and Shein.

The announcement on steel and aluminium tariffs comes just days after Trump imposed a 25% tariff on Canadian and Mexican goods, but subsequently paused those tariffs for 30 days, contingent on border security measures. Trump has threatened to impose the tariffs permanently unless both countries take more significant actions to address border security and curb the flow of illegal immigration and drugs into the US.

Trump’s tariff-heavy approach reflects his ongoing trade policy overhaul, which prioritizes securing better terms for the US in global trade negotiations, particularly with countries that impose higher tariffs on American products. As the president prepares to unveil further details of his reciprocal tariff plan, it remains to be seen how his strategy will affect global trade dynamics and the US economy.