Trump Imposes 25% Tariffs on Steel and Aluminium Imports to Boost U.S. Manufacturing

President Donald Trump has announced the imposition of a 25% tariff on steel and aluminium imports into the United States, a move that greatly expands previous trade restrictions. The new import taxes, which will take effect on March 12, 2025, will increase the cost of importing these metals into the country. Trump emphasized that the measure aims to boost domestic production and create more jobs within the United States. He dismissed any special deals for specific countries, calling the decision part of a larger effort to make America more self-sufficient.

While the decision is meant to support American producers, it has drawn sharp criticism from foreign governments and US companies that rely on imported metals. Canada, which supplies a significant portion of the steel and aluminium used in the US, is particularly affected. Canadian officials have expressed strong disapproval of the tariffs, with Minister Francois-Phillippe Champagne calling the move “totally unjustified.” He argued that Canadian steel and aluminium contribute to key US industries, including defense and automotive sectors, and that this decision harms North American competitiveness.

Trump responded to concerns that the tariffs would increase consumer prices by claiming that, in the long run, the costs would decrease. He also hinted at the possibility of further tariffs targeting other sectors such as medicines and computer chips, signaling that this was just the beginning of a broader economic strategy to encourage domestic manufacturing. These tariffs, he claimed, are a key part of his vision for “making America rich again.”

The United States is the world’s largest importer of steel, and its main suppliers include Canada, Brazil, and Mexico. Canada, in particular, plays a critical role, supplying more than half of all aluminium entering the US in recent years. This new round of tariffs is expected to have the most significant impact on Canada, which has already begun considering retaliatory measures in response to the tariffs.

This is not the first time Trump has enacted such tariffs. In 2018, during his first term as president, he imposed a 25% tariff on steel and a 15% tariff on aluminium. While some countries were later exempted, including Canada and Australia, the tariffs still resulted in higher costs for steel and aluminium in the US. This time, Trump has made it clear that no exemptions will be granted, and he is committed to strengthening American industries by reducing reliance on foreign imports.

SOURCE: Business day