Trump Announces 25% Steel and Aluminium Tariffs in Fresh Trade War Escalation

The United States is set to impose 25 percent tariffs on all steel and aluminium imports, marking a significant intensification of President Trump’s protectionist trade policies. The announcement, made aboard Air Force One en route to the Super Bowl in New Orleans, signals a broader expansion of the administration’s aggressive trade strategy.

The new tariffs will apply universally to metal imports, building upon existing duties. Trump’s characteristically direct approach includes plans for “reciprocal tariffs” against nations that implement retaliatory measures on American goods, declaring that “if they charge us, we charge them.”

Canadian exporters face particular exposure to these measures, as the country remains the largest source of steel and aluminium imports to the US market. Brazil, Mexico, and South Korea also stand to face significant impact as major steel suppliers to American industries.

European responses have been swift and decisive. French President Macron has committed to challenging Trump’s financial threats, whilst emphasising that American attention should focus on China rather than European trading partners. The European Commission awaits formal clarification but has indicated its readiness to protect EU interests through counter-measures.

British ministers have suggested the UK might avoid these tariffs due to its balanced trade relationship with the US. However, economic experts, including Paul Johnson from the Institute for Fiscal Studies, warn of potential indirect effects through market volatility and worldwide interest rate adjustments.

The timing of these tariffs follows closely behind Trump’s recent suspension of threatened measures against Mexico and Canada, who received a 30-day reprieve after agreeing to enhance border security measures. The administration’s concurrent 10 percent tariff on Chinese goods has already triggered retaliatory measures from Beijing, including levies on American oil, coal, and natural gas imports.