U.S. President Donald Trump has announced plans to impose a 25% tariff on all steel and aluminum imports into the United States, marking a significant escalation in his trade policies. The move, which Trump revealed while traveling to the Super Bowl in New Orleans, is expected to have major ramifications, particularly for Canada, one of the largest suppliers of these metals to the U.S.
Trump’s latest tariff initiative signals a return to his aggressive trade approach during his first term. In 2018, he implemented similar tariffs on steel (25%) and aluminum (10%) imports from Canada, Mexico, and the European Union. While a deal with Canada and Mexico later removed those tariffs, the EU levies remained until 2021. Now, Trump has declared that these new tariffs will apply to “everybody,” leaving no exemptions confirmed.
Canada’s response to the announcement was swift, with Ontario Premier Doug Ford criticizing Trump’s policies as “shifting goalposts and constant chaos,” warning that they put the Canadian economy at risk. Ontario is home to the majority of Canada’s steel production, and any U.S. tariffs would significantly impact its industry.
South Korea, another major steel exporter to the U.S., also felt the immediate effects, with stock prices of its leading steel and automobile manufacturers declining following Trump’s announcement. Meanwhile, Australian Prime Minister Anthony Albanese confirmed that his government would lobby for an exemption, as Australia had successfully done during Trump’s first term. The shares of BlueScope, Australia’s largest steel manufacturer, saw a 1.6% increase, likely due to its strong presence in the U.S. market.
Trump also reiterated his plan to implement reciprocal tariffs on all countries that tax U.S. imports. “If they charge us, we charge them,” he stated, adding that further tariff announcements would come “Tuesday or Wednesday” and take effect “almost immediately.” His recent move against China, imposing a 10% levy on all Chinese goods entering the U.S., has already led to retaliatory tariffs from Beijing.
Beyond trade policy, Trump made waves with an unusual proclamation declaring February 9 as “Gulf of America Day” to celebrate his renaming of the Gulf of Mexico. The move has been met with skepticism, with Mexico arguing that international rules prevent any single country from unilaterally renaming international waters.
As Trump continues to shape his economic and foreign policy strategies, the global response to these trade measures will be closely watched, with potential repercussions for key U.S. trading partners and industries.
