President Donald Trump announced plans to impose a 25% import tariff on all steel and aluminum entering the United States, a measure expected to significantly affect Canada.
He also hinted at introducing reciprocal tariffs on countries imposing import taxes on U.S. goods, though he did not specify the nations involved or mention any potential exemptions. An official announcement is anticipated later in the week.
“If they charge us, we charge them,” Trump said.
This move represents a further escalation in Donald Trump’s trade policies, which have already provoked retaliatory measures from China.
Canada and Mexico, two of the United States’ largest steel trading partners, are particularly impacted, with Canada being the leading supplier of aluminum to the U.S.
Steel production in the U.S. is a highly politicized issue, with advocates arguing that the nation must maintain the capacity to produce high-quality steel domestically to meet military needs during a national emergency without relying on imports.
During his first term, Trump imposed tariffs of 25% on steel imports and 10% on aluminum imports from Canada, Mexico, and the European Union. However, the U.S. reached an agreement a year later with Canada and Mexico to lift these tariffs, while those on EU imports remained in place until 2021.
Speaking aboard Air Force One on Monday, Trump stated his intention to announce tariffs on steel and aluminum for “everybody.”
“Any steel coming into the United States is going to have a 25% tariff,” he said.
In response, Doug Ford, the premier of the province of Ontario, accused Trump of “shifting goalposts and constant chaos, putting our economy at risk” in an online post. Canada’s steel production is concentrated in Ontario.
Canadian political adviser Catherine Loubier said she believed Trump’s threats were real, but said there could be a solution because of how connected the two economies are.
“Hundreds of thousands of jobs in the US are linked to the steel and aluminium input from Canada into the US economy,” she told the BBC’s Today programme.
“I think there’s a lot at stake and nobody’s winning with these tariffs, that’s for sure.”
Trump’s comments caused shares in major South Korean steel and car makers to fall. South Korea is a major exporter of steel to the US.
Meanwhile, Australian Prime Minister Anthony Albanese told parliament his government would “make the case” to the US for Australia to be given an exemption to any steel and aluminium tariffs – something they got during Trump’s first term.
Tariffs are a central part of Trump’s economic vision – he sees them as a way of growing the US economy, protecting jobs and raising tax revenue.
The result has been a flurry of announcements since his inauguration.
- Earlier this month, Trump threatened to impose import duties of 25% on Canadian and Mexican products
- He later delayed that plan for 30 days – until early March – after speaking to the leaders of both countries.
- He also brought in new US levies of 10% on all Chinese goods coming into the US.
- Beijing retaliated with its own set of tariffs which took effect on Monday.
- These included controls on imports of US coal, oil, gas, agricultural machinery, large-engine cars, and controls on exports of 25 rare metals needed for electric and military equipment
- Trump has also said the US will introduce reciprocal tariffs on “Tuesday or Wednesday” on all countries that tax US imports, which will match the tariff rates levied by each country. “It’ll be great for everybody, including other countries,” he said.
Chinese government spokesperson Guo Jiakun said: “There are no winners in a trade war or tariff battle. What is harmed are the interests of the people of both countries.”
He urged the US to “correct its erroneous approach and stop politicising and weaponising economic and trade issues”.
Victor Gao, a Chinese diplomat and economist, told the BBC that China’s move to put controls on rare metal exports were “in direct retaliation against the US imposition of policies denying Chinese access to semiconductor chips and many other AI developments”.
“And this is truly tit-for-tat because China wants to have free trade for all of these things.”
However, he added that China would not be affected too much because of US shoppers’ demand for cheap Chinese goods.
“[Chinese goods] are very much affordable and competitive even with a 10% tariff,” he said.
‘Gulf of America’
During his trip to New Orleans, Donald Trump signed a proclamation declaring February 9 as “Gulf of America Day” to commemorate his directive renaming the Gulf of Mexico. The proclamation was signed as his plane crossed over the body of water.
Mexico has contested the renaming, arguing that the United States cannot legally change the Gulf’s name. According to United Nations regulations, a nation’s sovereign territory extends only up to 12 nautical miles from its coastline, limiting jurisdiction over international waters.
Trump was also asked whether he had spoken to Russian President Vladimir Putin and replied: “I don’t want to talk about it, and if we are talking, I don’t want to tell you about the conversations too early, but I do believe we’re making progress.”
“I would imagine I would be meeting with Putin at the right time… at the appropriate time,” he said.
Trump also repeated his unlikely suggestions that the US could take over Canada and the Gaza Strip, saying Canada would fare better as the “51st state” and that he was “committed to buying and owning Gaza”.