Former U.S. President Donald Trump announced plans to introduce new 25% tariffs on all steel and aluminum imports, escalating his trade overhaul policy. Speaking aboard Air Force One, Trump revealed the tariffs would be announced Monday, with reciprocal tariffs following shortly after.
Under the reciprocal plan, the U.S. would match tariff rates imposed by other countries. “If they charge us, we charge them,” Trump stated.
Key Insights on Tariffs
- Major suppliers: Canada, Brazil, and Mexico lead in U.S. steel and aluminum imports. Hydropower-rich Canada alone accounts for 79% of U.S. aluminum imports.
- Trump emphasized the importance of tariffs in reviving U.S. industries, citing U.S. Steel as a prime example.
- Questions remain on duty-free exemptions negotiated during Joe Biden’s administration and their status under Trump’s new policy.
Industry Reactions
Kevin Dempsey, CEO of the American Iron and Steel Institute, supported the move, praising Trump’s commitment to the U.S. steel industry. However, concerns were raised over potential retaliatory tariffs.
Chris Swonger, CEO of the Distilled Spirits Council, warned of a “catastrophic” impact on American whiskey exports if the EU reinstates a 50% tariff in response.
Border Disputes
Trump also criticized Canada and Mexico for insufficient border security measures ahead of a March 1 tariff deadline. He warned of 25% tariffs on all imports unless stronger actions are taken, calling the current efforts “not good enough.”
Further details on the reciprocal tariff plan will be unveiled in a press conference later this week.