Trump imposes 25% tariffs on aluminium and steel imports

President Donald Trump has announced a 25% tax on all steel and aluminium coming into the United States, greatly expanding existing trade restrictions.

These new import taxes will make it more expensive to bring these metals into the US. The decision comes even though Canada, America’s biggest supplier of these metals, and other countries have warned they might respond with their own trade actions. US companies that need these imported metals have also expressed worry, but Trump says his plan will help American producers make more at home.

Trump said there would be no special deals for any countries, explaining he was “simplifying” the rules, which start on March 12. “This is a big deal, the beginning of making America rich again,” Trump said. “Our nation requires steel and aluminium to be made in America, not in foreign lands,” he added.

When asked if these taxes would make things more expensive for buyers, Trump said: “Ultimately it will be cheaper.” He also hinted at more similar actions to come, saying “It’s time for our great industries to come back to America… this is the first of many,” suggesting future taxes might target medicines and computer chips.

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The United States brings in more steel than any other country, with Canada, Brazil, and Mexico being its main suppliers. Canada is especially important, providing more than half of all aluminium that came into the US last year. These new taxes are expected to affect Canada the most.

Canada’s Innovation Minister, Francois-Phillippe Champagne, strongly disagreed with the decision, calling it “totally unjustified.” He explained, “Canadian steel and aluminium support key industries in the US from defence, shipbuilding, energy to automotive. This is making North America more competitive and secure.”

Canadian steel makers are pushing their government to fight back against the US “immediately.” Kody Blois, an important member of Canada’s ruling Liberal Party, said Canada is now looking for ways to do less business with the US.

This isn’t the first time Trump has done this. In 2018, during his first term as president, he put similar taxes in place – 25% on steel and 15% on aluminum. However, he later made deals to exempt many countries, including Australia, Canada, and Mexico. Even with these exemptions, the 2018 taxes still made steel 2.4% more expensive and aluminium 1.6% more expensive in the US, according to the US International Trade Commission.