Trump Imposes 25% Tariffs On Steel, Aluminium From Canada, Mexico, Others

In a move set to have widespread economic consequences, U.S. President Donald Trump has signed executive orders to impose 25% tariffs on steel and aluminium imports starting March 12, 2025. This decision comes despite objections from major international trade partners, including the European Union and China, which have vowed to retaliate.

The executive orders, signed on Monday, target imports of aluminium and steel from countries such as Argentina, Australia, Canada, Mexico, EU countries, and the UK, as well as additional countries for steel, including Brazil, Japan, and South Korea.

“I’m simplifying our tariffs on steel and aluminium,” Trump stated from the Oval Office, emphasizing that the tariffs would be imposed across the board, with no exceptions or exemptions.

The tariffs are believed to indirectly address China’s role in global trade. Trump pointed out that some countries, like Mexico, have been using their exemptions from these tariffs to funnel Chinese aluminium and steel into the United States. He cited the increasing volume of steel imports from China through Mexico as evidence of this practice.

This tariff decision comes at a time when Canada, Mexico, and Brazil are significant steel exporters to the U.S., followed closely by South Korea. South Korea’s acting President, Choi Sang-mok, has vowed to protect domestic industries and engage diplomatically with the U.S. administration to reduce uncertainties.

In addition to steel and aluminium, Trump hinted at the possibility of imposing further tariffs on automobiles, pharmaceuticals, and computer chips. He also promised a future announcement on broader “reciprocal tariffs” to counterbalance the levies that other nations impose on U.S. products.

While Trump’s administration has long maintained that such tariffs are necessary to protect U.S. industries from unfair competition, especially from Asian and European markets, this move has been met with resistance. Canadian steelmakers warned of significant disruptions, and the European Commission pledged to “protect the interests of European businesses, workers, and consumers” through countermeasures. EU President Ursula von der Leyen stated that any unjustified tariffs would be met with “firm and proportionate countermeasures.”

Germany’s Chancellor, Olaf Scholz, indicated that Europe would present a united front against these tariffs, and French President Emmanuel Macron called for direct confrontation with Trump, urging focus on China rather than the European Union.

Britain’s steel industry also voiced strong opposition, calling the tariffs a “devastating blow.” On the other side, China responded to the tariffs with its own retaliatory measures, imposing additional levies on U.S. coal and liquefied natural gas.

Trump’s stance has led to concerns about a trade war, with critics arguing that the tariffs will harm U.S. consumers rather than the foreign exporters they target. Despite this, Trump has insisted that the burden of these tariffs will fall on the exporters, not American consumers, although most experts disagree with this assertion. However, Trump did acknowledge this month that Americans could experience economic “pain” as a result of the tariffs.