US President Donald Trump announced on Sunday that he will impose new 25% tariffs on all steel and aluminium imports into the US, adding to the existing metal duties, in a significant escalation of his trade policy overhaul.

Speaking to reporters on Air Force One on his way to the NFL Super Bowl in New Orleans, Trump revealed that the new tariffs will be announced on Monday. He also stated that reciprocal tariffs would be introduced on Tuesday or Wednesday, which would apply to all countries and mirror the tariff rates imposed by each nation. “And very simply, it’s, if they charge us, we charge them,” Trump said of the reciprocal tariff plan.

Canada, Brazil, and Mexico are the largest sources of US steel imports, followed by South Korea and Vietnam, according to data from the government and the American Iron and Steel Institute. Hydropower-rich Canada is the largest supplier of primary aluminium metal to the US, accounting for 79% of total imports in the first 11 months of 2024.

“Canadian steel and aluminium support key industries in the US, from defence to shipbuilding and autos,” said Canadian Innovation Minister François-Philippe Champagne on X. “We will continue to stand up for Canada, our workers, and our industries.”

Trump also stated that while the US government would allow Japan’s Nippon Steel to invest in US Steel, it would not permit Nippon to hold a majority stake. “Tariffs are going to make it very successful again, and I think it has good management,” Trump said of US Steel. Nippon Steel declined to comment on Trump’s latest announcements.

Quota questions

During his first term, Trump imposed tariffs of 25% on steel and 10% on aluminium but granted several trading partners duty-free exemptions, including Canada, Mexico, and Brazil. Mexico is a major supplier of aluminium scrap and alloy. Former President Joe Biden later negotiated duty-free quota arrangements with Britain, the EU, and Japan. It remains unclear what will happen to these exemptions and quotas under Trump’s new plan.

“Quebec exports 2.9 million tonnes of aluminium to the US, meeting 60% of their needs. Do they prefer to get supplies from China?” François Legault, premier of Quebec, wrote on X. “All this shows that we must renegotiate our free trade agreement with the US as soon as possible and not wait for the planned review in 2026. We must end this uncertainty.”

Steel mill capacity usage surged above 80% in 2019 after Trump’s initial tariffs but has since fallen, as China’s dominance in the sector has lowered steel prices. A Missouri aluminium smelter, revived by the tariffs, was idled last year by Magnitude 7 Metals.

Matching rates

Trump said he would hold a news conference on Tuesday or Wednesday to provide more details on the reciprocal tariff plan, noting that he had first revealed his intention on Friday. The new president has long complained about the EU’s 10% tariffs on auto imports, much higher than the US rate of 2.5%. He frequently mentions that Europe “won’t take our cars” but ships millions across the Atlantic every year.

However, the US benefits from a 25% tariff on pickup trucks, a key source of profits for Detroit automakers General Motors, Ford, and Stellantis’ US operations. The US trade-weighted average tariff rate is about 2.2%, according to World Trade Organization data, compared to 12% for India, 6.7% for Brazil, 5.1% for Vietnam, and 2.7% for EU countries.

Border steps

In a separate interview with Fox News, Trump stated that Canada’s and Mexico’s actions to secure their US borders and halt the flow of drugs and migrants were insufficient ahead of a March 1 tariff deadline. Trump has threatened to impose 25% tariffs on all Mexican and Canadian imports unless both countries take stronger actions. He paused the tariffs until March 1 after some initial border security concessions, with Mexico agreeing to deploy 10,000 National Guard troops to its border and Canada increasing technology, personnel, and anti-fentanyl measures.

When asked if Mexico’s and Canada’s actions were adequate, Trump responded: “No, it’s not good enough. Something has to happen, it’s not sustainable, and I’m changing it.” He did not specify what additional measures Canada and Mexico would need to take to avoid broad tariffs by March 1.