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| Trump to Unveil Another New Tariff on Monday |
Former President Donald Trump, speaking to reporters aboard Air Force One on Sunday, announced his intention to introduce a 25% tariff on all steel and aluminum imports into the United States starting Monday.
"On Monday, we will be revealing new steel tariffs," Trump declared. "All steel imports into the U.S. will incur a 25% tariff."
He further confirmed that aluminum imports would be subject to the same tariff.
Additionally, Trump revealed plans for a separate press conference on Tuesday or Wednesday to introduce a new set of reciprocal tariffs. These measures aim to match the tariffs imposed by other countries on U.S. exports, aligning trade policies on a dollar-for-dollar basis.
"To put it plainly, if another country imposes tariffs on us, we will respond in kind," Trump stated.
However, he did not elaborate on the full scope or timeline of these new tariffs. It remains uncertain whether the proposed steel and aluminum tariffs will be imposed in addition to those currently affecting exports from countries such as China.
During his administration in 2018, Trump initially imposed 25% tariffs on steel and 10% on aluminum, although he later removed them for Mexico and Canada in 2019.
Last week, Trump enacted a 10% tariff on all Chinese imports to the U.S., adding to existing tariffs on China. In response, China swiftly retaliated by imposing tariffs on certain chips and metals, launching an investigation into Google, and placing the parent company of Calvin Klein and Tommy Hilfiger on its unreliable entities list.
However, Trump has already begun easing some of these tariffs. He temporarily suspended duties on imports valued at $800 or less until the Commerce Department develops a system to track such transactions. Additionally, he postponed the implementation of a 25% tariff on goods from Mexico and Canada until at least March 1.
Although the U.S. is no longer as reliant on manufacturing as it once was, it still consumes millions of tons of steel and aluminum annually. These materials are vital to industries such as automotive manufacturing, aerospace, oil production, and infrastructure projects, including road and bridge construction. Imposing tariffs could drive up production costs by increasing the price of imported steel while simultaneously allowing domestic manufacturers to raise prices due to reduced foreign competition.
The American steel industry welcomed the tariff proposal, seeing it as a protective measure for U.S. interests.
"The AISI values President Trump's continued efforts to bolster the American steel sector, which plays a key role in national security and economic strength," stated Kevin Dempsey, CEO of the American Iron and Steel Institute.
Canada and Mexico rank as the largest and third-largest suppliers of steel to the U.S., respectively. According to government data from the American Iron and Steel Institute, Canada contributes nearly 25% of all steel imports by weight, while Mexico accounts for approximately 12%.
The European Union, which identified the U.S. as its top steel and iron export market in 2023, criticized the potential tariffs.
"The EU sees no valid reason for the imposition of tariffs on its exports and strongly opposes such measures," remarked Olof Gill, a spokesperson for the European Commission's trade department. "We will take appropriate steps to safeguard European businesses, workers, and consumers."
Between 2017 and 2019, steel imports into the U.S. dropped by 27%, partly due to reduced demand but also as a consequence of tariffs. While domestic steel production increased during this period, it did not fully offset the decline in imports. Despite the temporary boost from tariffs, U.S. steel production in 2023 was approximately 2% lower than the previous year and nearly 10% below its levels from a decade ago.
