Trump announces 25% tariffs on steel and aluminum imports, signals reciprocal trade war
PTC Web Desk: In a major shift in the US trade policy, President Donald Trump has announced that starting Monday, the United States will impose a 25 per cent tariff on all steel and aluminum imports. This move marks a renewed push for protectionist trade policies, with additional metal duties expected to be revealed later this week.
Speaking aboard Air Force One en route to the NFL Super Bowl in New Orleans, Donald Trump told mediapersons that he also plans to introduce reciprocal tariffs as early as Tuesday. These tariffs, aimed at matching the rates imposed by other nations on US goods, will take effect almost immediately.
While Trump did not specify which countries would be targeted, he said US trade partners imposing high tariffs on American goods would face equal charges in return. "If they charge us, we charge them," Trump asserted.
During his first term from 2016 to 2020, Donald Trump had already levied a 25% tariff on steel and 10% on aluminum imports, but later granted duty-free quotas to Canada, Mexico, and Brazil. His successor, Joe Biden, extended similar exemptions to Britain, Japan, and the European Union. However, US steel mill capacity utilisation has declined in recent years, prompting Trump to revive his aggressive tariff strategy.
The new tariffs could severely impact key trading partners, particularly Canada, Mexico, and Brazil, which are the largest suppliers of steel to the US. Canada alone accounted for 79% of total aluminum imports in 2024, with Mexico playing a major role in supplying aluminum scrap and alloys.
Trade War With Europe?
Trump has long criticised the European Union’s 10% tariff on US auto imports, arguing that it is significantly higher than the 2.5% tariff on European cars entering the US. He claims the EU "won't take our cars" but continues to export millions of vehicles to the US annually.
However, the US itself maintains a 25% tariff on imported pickup trucks, a crucial market segment for General Motors, Ford, and Stellantis.
US Tariff Comparisons
According to World Trade Organization (WTO) data, the US trade-weighted average tariff rate stands at 2.2%, whereas other nations impose significantly higher rates:
India: 12%
Brazil: 6.7%
Vietnam: 5.1%
European Union: 2.7%
With Trump pushing for trade parity, these reciprocal tariffs could spark new trade conflicts, affecting industries worldwide.
- With inputs from agencies
