US President Donald Trump plans to impose 25% tariffs on all imports of steel and aluminum into the United States, broadening his trade salvo and threatening ties with some of the country’s top trading partners.
Trump, speaking to reporters Sunday on Air Force One, said the tariffs would apply to imports of the metals from all countries. Asked whether major suppliers Mexico and Canada would be included, he said the levies would cover “everybody.” He didn’t specify when the duties would take effect.
The president also said he would announce reciprocal tariffs this week on countries that tax US imports. Those would be enacted “almost immediately” after an announcement, Trump said, without providing further detail.
Sunday’s move is Trump’s latest in a series of threatened tariffs on countries and specific sectors that have rattled markets in recent weeks. Yet it’s uncertain whether he’ll follow through — he announced, then paused, tariffs on Canada and Mexico, while proceeding with levies on China.
The US relies on aluminum imports from countries including Canada, the United Arab Emirates and Mexico, to meet the vast majority of demand — net imports added up to more than 80% in 2023, according to Morgan Stanley. Steel imports account for a smaller portion of overall consumption, but are vital for sectors leaning on specialty grades, including aerospace, auto manufacturing and energy, from wind developers to oil drillers.
Some oil companies won exclusions from tariffs on the metal during Trump’s first term.
In Monday trade in Asia after Trump’s announcement, markets were largely steady. Benchmark prices for iron ore, a key ingredient in steelmaking, were up 0.1% in Singapore at around 11.45am local time (10.45am Thailand time), after a modest rise in the early morning, while three-month aluminum futures edged higher on the London Metal Exchange. US futures on Comex added 0.5%, in very light trade.
“This round of 25% tariff on steel is definitely bearish on the market’s sentiment for ferrous commodities. It could take two to three days for the market to digest with price weakening,” said Mengtian Jiang, analyst at consultancy Horizon Insights.
Many steel and aluminum buyers and sellers had expected they would have at least until March to prepare for any tariff implementation. Both sides will now have to scramble to find new markets and suppliers.
Exporters like South Korea, which sells both aluminum and steel to the US, have already been seeking other markets. South Korea’s steel shipments are currently about 70% of the annual average for 2015-2017, before the first Trump trade blitz, though by value the US remains the largest destination for its steel. The country’s trade ministry said it was closely monitoring the US situation.
Trump didn’t clarify whether or not imports of metal from China would face double tariffs, given he has already imposed a 10% tariff on Chinese goods.
In response to the blanket duty, Beijing last week announced retaliatory measures that were set to take effect on Monday. Those were more calibrated in scope, targeting only imported goods from the US valued at $14 billion in 2024.
China’s commerce and foreign ministries didn’t immediately respond to requests for comment.
Australian Prime Minister Anthony Albanese told parliament on Monday that he had a scheduled conversation with Trump and would seek an exemption for the country’s steel and aluminum exports.
Tariff ambitions
The scale of Trump’s overall tariff ambitions remains unclear. His willingness to reverse course on occasion has reinforced the perception that the new president is using his pronouncements on levies primarily as a negotiating tool.
“As we’ve already learnt from President Trump’s first few weeks in office, it’s best not to second-guess, or even third-guess, his tariff strategy until they’re firmly in place and actively applied to trade,” said Atilla Widnell, managing director at Navigate Commodities.
Trump delayed tariffs he threatened to impose on imports from Mexico and Canada to March after they offered modest proposals to increase security at the borders. He has said he would impose duties on goods including pharmaceuticals, oil and semiconductors and said he’s considering import duties on the European Union.
Yet he has also alternated between tough talk against Beijing and signals that he wants to work with China’s President Xi Jinping as he seeks more balanced trade. The US president has ordered an agreement he signed in 2020, known as the Phase One deal, to be reevaluated, suggesting tariff talks with China could drag on.
The president has embraced tariffs as a centerpiece of his bid to remake the US economy, shrink trade deficits and find new sources of revenue to help deliver on his tax agenda. The moves threaten to wreak economic havoc, with economists saying the levies will raise costs for US manufacturers who import goods, raise prices for consumers already weary from inflation, reduce trade flows and fail to bring in the revenue Trump has predicted.
Steel and aluminum were among Trump’s earliest tariffs during his first term, implementing a 25% duty on steel and a 10% duty on aluminum in 2018 on grounds of national security.
The US steel industry is looking to recover from its worst year since Trump’s first term in office. Domestic steelmakers have complained that a renewed uptick in imports has hurt their profits and production numbers.
Analysts said on Monday that US steel mills, currently running below full capacity because of high costs, would have to crank up production to compensate for lower imports.
The steel tariffs also come as Japan’s Nippon Steel Corp struggles to buy US Steel Corp for $14.1 billion. The transaction was blocked by former president Joe Biden and is also opposed by Trump.
On Friday, after a meeting with Japanese Prime Minister Shigeru Ishiba, Trump said that Nippon Steel is now considering investing in US Steel instead of purchasing the company outright. Trump told reporters on Sunday that Nippon Steel cannot have a majority stake in the US firm.
“I don’t want US Steel being owned by a foreign country,” Trump said. “All they can have is an investment.”
The two companies are challenging the US block on the deal in court.