Trump: 25% tariff on all imported steel and aluminum to be announced Monday

2025.02.10

Trump: 25% tariff on all imported steel and aluminum to be announced Monday

Tariff retaliation will also be announced this week.

2025.02.10 - 00:30:25

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Tariff retaliation will also be announced this week.

Author: Jinshi Data

U.S. President Trump said he will announce on Monday a 25% tariff on all imported steel and aluminum.

Trump told reporters aboard Air Force One on Sunday that the tariffs would apply to metals imported from all countries. He did not specify when the tariffs would take effect.

He also said he would announce reciprocal tariffs on countries that tax American imports later this week. These tariffs, Trump said, would not take effect on the same day they are announced—possibly Tuesday or Wednesday—but would be implemented soon.

These moves are the latest in a series of actions by Trump threatening tariffs against various countries and specific industries.

The full scope of Trump’s overall tariff ambitions remains unclear. He has also said he will impose tariffs on other goods including pharmaceuticals, oil, and semiconductors, and indicated he is considering imposing import tariffs on the European Union.

Trump had previously vowed to impose tariffs on countries like Canada and Mexico, accusing them of doing too little to help stop illegal drugs and undocumented migrants from crossing the U.S. border. But last week, Trump shelved his plan to impose 25% tariffs on these two North American nations after their governments made modest commitments to address his border concerns. Tariffs on Canada and Mexico have been suspended until March 4.

While Trump could reverse course and reimpose trade duties, the decision reinforces the perception that this new president is reluctant to follow through on his tariff threats and instead prefers to use tariffs as a negotiating tool. Trump views tariffs as central to reshaping the U.S. economy, reducing the trade deficit, and finding new revenue sources to support his tax agenda.

Economists argue that tariffs will raise costs for U.S. manufacturers reliant on imported goods, drive up prices for consumers already weary of inflation, reduce trade flows, and fail to generate the revenues Trump predicts.

The Trump administration and its allies view Mexico and Canada’s commitments on border measures as a victory for the president’s approach.

One of Trump’s trade advisers, Peter Navarro, said at an event hosted by Politico last week: “We saw a lot of surprise when this policy was announced, but we also saw immediate impact on policies toward Mexico and Canada.”

The announcement comes as the U.S. steel industry seeks recovery from its worst year since Trump’s first term. Domestic steelmakers have complained that renewed increases in imports are hurting their profits and output.

Steel and aluminum tariffs were among the earliest imposed during Trump’s first term. In 2018, Trump levied a 25% tariff on steel and a 10% tariff on aluminum, citing national security grounds.

The tariffs come as the $14.1 billion deal for Japan’s Nippon Steel Corp. to acquire U.S. Steel Corp. remains stalled. The transaction was blocked under former President Biden, and Trump also opposes it.

After meeting with Japanese Prime Minister Shigeru Ishiba last Friday, Trump said Nippon Steel is now considering investing in U.S. Steel rather than acquiring it outright. On Sunday, Trump told reporters that Nippon Steel cannot hold majority ownership of U.S. Steel. The two companies are challenging the U.S. government’s block of the deal in court.

Following the news, the dollar index rose notably in early trading, while commodity-linked currencies declined sharply. At time of writing, the dollar index was up 0.64% at 108.39; AUD/USD fell 0.56% to 0.6248; USD/CAD gained 0.47% to 1.4369.