Trump Announces 25% Tariffs on Steel and Aluminum Imports in Latest Trade Escalation

The U.S. will impose new 25% tariffs on all steel and aluminum imports starting March 4th, eliminating prior exemptions for countries like Mexico and Canada. President Trump also announced reciprocal tariffs to match other nations' rates, aimed at boosting U.S. industries but raising the risk of escalating global trade tensions.

In a significant move to reshape U.S. trade policy, President Donald Trump announced on Sunday February 9th that the United States will impose new 25% tariffs on all steel and aluminum imports. This decision, revealed during a conversation with reporters aboard Air Force One en route to the Super Bowl, builds on existing duties and intensifies the administration’s protectionist stance on global trade.

The new tariffs will replace previous rates, including a notable increase in the aluminum tariff from 10% to 25%. Furthermore, President Trump has eliminated prior exemptions and quotas granted to countries like Mexico and Canada, as well as product-specific exclusions.

Trump also revealed plans to introduce reciprocal tariffs in the coming days, which would match the rates imposed by other countries on U.S. products. These reciprocal tariffs are expected to take effect almost immediately and will apply to all nations.

The policy aims to bolster domestic steel and aluminum industries, but it raises the risk of exacerbating trade tensions worldwide. With the new tariffs set to take effect on March 4, businesses importing metals will need to quickly adjust to the increased costs. As these measures unfold, the global trade landscape may face heightened uncertainty, with potential ripple effects across multiple industries and markets.

China is the world's largest producer of both aluminum and steel. It leads global production in aluminum, accounting for around 56% of the total output, and dominates the steel industry, producing over 50% of the world's crude steel:

The Steel Industry at a Glance

According to the World Steel Association, global crude steel production in 2024 was approximately 1,882.6 million metric tons. The largest steel-producing country is currently China, which accounted for 54% of world crude steel production in 2024 (about 1,005.1 million metric tons), followed by India, which produced around 149.6 million metric tons (7.9% of global production), Japan with a production of around 44.4 million metric tons (2.4% of global production), and the United States, which produced about 85 million metric tons (4.5% of the global total).

The world's largest steel importer is the United States. It consistently imports the highest volume of steel globally, due to its domestic demand exceeding its production capacity.

Canada is the top supplier of steel and aluminum to the U.S., with exports worth around $35 billion last year. Approximately a quarter of the steel used in the United States is imported, primarily from neighboring countries like Mexico and Canada, as well as key allies in Asia and Europe, including Japan, South Korea, and Germany.

The Aluminium Industry at a Glance

Aluminum is a lightweight, durable, and highly adaptable metal, which is why it ranks among the most produced metals globally. Its combination of strength, resistance to corrosion, and versatility makes it essential in industries such as construction, automotive manufacturing, appliances, and consumer goods.

China is the world’s largest aluminum producer, accounting for approximately 56% of global production with 35.9 million metric tons in 2023. It is followed by India, producing around 4.1 million metric tons (about 6% of global production), Russia at 3.8 million metric tons (around 5%), and Canada at approximately 3 million metric tons (about 4%). Norway ranks as the eighth-largest producer, with an estimated 1.3 million metric tons, representing around 2% of global production. (Source: U.S. Geological Survey, Mineral Commodity Summaries, January 2024)

Aluminum production in the U.S. has declined in recent decades, with many domestic smelters shutting down due to high energy costs and competition from abroad. The U.S. relies heavily on imported aluminum, particularly from countries like Canada, to meet its demand.

EU vows swift retaliation over U.S. tariffs.

European Union chief Ursula von der Leyen warned on Tuesday that U.S. tariffs on steel and aluminum "will not go unanswered," signaling that the 27-nation bloc will impose strong countermeasures. As a result, well-known U.S. industries—such as bourbon, jeans, and motorcycles—could face significant consequences.