Trump's New Tariffs on Steel and Aluminum Imports: A Shift with Global Repercussions

In a newly signed set of memorandums, President Trump imposed a 25% tariff on all steel and aluminum imports starting on March 12th, marking a significant escalation in his administration's trade policies. The US relies heavily on imports, with around 80% of its aluminum and 17% of its steel coming from countries such as Canada, Mexico, Japan, South Korea, and Germany. These imports totaled approximately $50 billion last year.

Canada, the US' largest supplier of both steel and aluminum, is expected to be the hardest hit by the new tariffs. While the move aims to benefit US metals companies, it may also raise costs for industries such as construction and automotive manufacturing, which rely on affordable metal imports.

This tariff is not the first of its kind. In 2018, Trump imposed a 25% tariff on steel and a 10% levy on aluminum, citing national security concerns and the desire to strengthen domestic production. While steel imports did decline by 35% from 2014 to 2024, domestic steelmakers argued that imports continued to negatively impact their businesses, as production levels failed to meet the country’s demand.

The 2018 tariffs were met with retaliatory actions from the European Union, which introduced levies on well-known American brands like Harley-Davidson and Levi’s. After lengthy negotiations, the US granted exemptions for certain countries, including those in the EU.

Now, with the new tariffs on the horizon, European Commission President Ursula von der Leyen has expressed strong opposition. She stated, “I deeply regret the US decision to impose tariffs on European steel and aluminum exports...Tariffs are taxes—bad for business, worse for consumers.” Von der Leyen emphasized that the EU would respond with "firm and proportionate countermeasures" to protect its economic interests.

Additionally, Trump has vowed to introduce reciprocal tariffs on "every country" that imposes duties on US imports, signaling a broader shift in US trade strategy. As tensions rise, the global economic landscape may be significantly impacted by these moves, with businesses and consumers on both sides facing uncertain consequences.