Trump Expands Tariffs on Steel and Aluminium Imports, Sparking Backlash from Canada and Industry Groups

President Trump announces a 25% import tax on all steel and aluminium entering the US, a move that is set to increase costs and has sparked backlash from key trading partners and US industries.

President Donald Trump has enacted a 25% import tax on all steel and aluminium entering the United States, expanding upon existing trade barriers and further intensifying the nation’s stance on foreign imports. This new tariff will raise the cost of bringing these metals into the US, a decision that comes despite concerns about retaliation from political leaders in Canada—America’s largest supplier of both materials—as well as other countries globally.

US businesses that rely on these imports have voiced concerns about the potential negative impact of higher costs. However, President Trump has defended the decision, claiming that the move will strengthen domestic production and make the US more self-sufficient. He also emphasized that there would be no exceptions to the tariffs, adding that the rule changes would be implemented starting March 4.

“This is a big deal, the beginning of making America rich again,” Trump said during his announcement. “Our nation requires steel and aluminium to be made in America, not in foreign lands.” When questioned about the possibility of higher prices for consumers, Trump asserted, “Ultimately it will be cheaper.”

He further suggested that these tariffs are just the beginning, hinting that similar measures might be applied to other industries, including pharmaceuticals and computer chips. “It’s time for our great industries to come back to America…this is the first of many,” he added.

The United States is the world’s largest importer of steel, with Canada, Brazil, and Mexico among its top suppliers. Canada alone accounted for over 50% of the aluminium imported into the US last year. Given these figures, the tariffs are expected to have the most significant impact on Canada.

In response to the announcement, Canada’s Minister of Innovation, Francois-Phillippe Champagne, denounced the tariffs as “totally unjustified.” He argued that Canadian steel and aluminium are critical to US industries, including defense, shipbuilding, energy, and automotive manufacturing. “This is making North America more competitive and secure,” Champagne stated.

Ontario Premier Doug Ford also criticized the decision, accusing Trump of “shifting goalposts and constant chaos,” which, he argued, jeopardized the Canadian economy. Canada’s steel makers have called on the government to retaliate against the US “immediately,” with Kody Blois, a member of Canada’s governing Liberal Party, asserting that the tariffs were upending a longstanding, strong partnership between the two countries.

In the US, the announcement sent the stock prices of major steelmakers soaring, with Cleveland-Cliffs shares jumping nearly 20%. At the same time, prices for steel and aluminium surged. However, much of the broader market response was muted, with analysts uncertain about the seriousness of Trump’s plans, given his history of postponing tariffs or negotiating exemptions for certain countries.

In 2018, during his first term, Trump imposed a 25% tariff on steel and a 15% tariff on aluminium, but ultimately negotiated carve-outs for several countries, including Canada, Mexico, and Australia. “This is sort of a replay of 2018,” said Douglas Irwin, a professor of economics at Dartmouth College. “The biggest question is the uncertainty over whether this is a bargaining tactic or whether he really wants to help out the steel industry in that way.”

Just last week, Trump delayed a 25% tariff on all products from Canada and Mexico for 30 days, while also imposing new tariffs on Chinese goods, resulting in retaliatory actions from China.

Tariffs, which are taxes levied on imports as they enter a country, are a central part of Trump’s economic policy, as he seeks to protect US jobs and raise tax revenue. While Trump sees tariffs as a tool to grow the economy, there are significant concerns about their potential impact within the US itself, as many US manufacturers rely on imported steel and aluminium for their products.

Industry groups from construction to food canning have warned that the new tariffs could negatively affect their operations, driving up costs. In Trump’s first term, the tariffs raised the average price of steel and aluminium in the US by 2.4% and 1.6%, respectively, according to the US International Trade Commission.

Stephen Moore, a senior fellow at the Heritage Foundation and former economic advisor to Trump’s campaign, expressed skepticism about the effectiveness of tariffs as a means of job creation, noting that similar measures in Trump’s first term had not yielded the expected results. Moore believes the new tariffs may be a tactic to draw the world’s attention to US trade concerns rather than a genuine attempt to aid the steel industry.

Trump’s administration argues that the new tariffs will prevent countries like China and Russia from circumventing existing tariffs by rerouting products through other nations. Additionally, new standards will require that steel be “melted and poured” and aluminium be “smelted and cast” in North America to qualify for tariff-free entry.

Nick Iacovella, a spokesperson for the Coalition for a Prosperous America, which represents US steelmakers, expressed concern about the potential surge in steel imports from Mexico, which could exceed levels agreed upon in 2019. However, he also acknowledged that Canada has a trade surplus with the US, sending more goods to the US than it imports.

“There are still imbalances with the Canadian and United States trading relationship that should be addressed,” Iacovella stated, adding that while the tariff announcement may be seen as a broad approach, it likely targets specific issues with Canada and Mexico’s trade practices.

The imposition of these new tariffs marks a critical moment in the US’s ongoing trade policies under Trump, as the effects of the decision unfold in the coming months, with both domestic industries and international relations at stake.


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