(Image source from: x.com/POTUS)
In a significant enhancement of his trade policy, President Donald Trump declared that starting Monday, the United States will implement a 25 percent tariff on all imports of steel and aluminum. This announcement comes in addition to further metal duties that are anticipated to be revealed later in the week. While traveling to the NFL Super Bowl in New Orleans on Air Force One, Trump spoke with reporters on Sunday and indicated that he might unveil reciprocal tariffs as soon as Tuesday, which would be enacted almost immediately. The President did not specify which entities would be affected by these reciprocal tariffs, but he emphasized that the U.S. would respond to the tariff rates imposed by other nations, applying this strategy universally across all countries. He succinctly stated, “If they charge us, we charge them,” regarding his approach to reciprocal tariffs.
During his initial presidential term from 2016 to 2020, Trump enacted a 25 percent tariff on steel and a 10 percent tariff on aluminum but subsequently provided several trading nations, such as Canada, Mexico, and Brazil, with duty-free quotas. Former President Joe Biden expanded these exemptions to include Britain, Japan, and the European Union, while U.S. steel mill capacity utilization has seen a decline in recent years. According to official statistics, Canada, Brazil, and Mexico represent the largest sources of steel imports for the U.S., followed closely by South Korea and Vietnam. Notably, Canada significantly leads as the primary supplier of raw aluminum to the U.S., constituting 79 percent of all imports in the first eleven months of 2024. Additionally, Mexico plays a crucial role as a supplier of aluminum scrap and aluminum alloy.
The President announced that he would hold a press conference on either Tuesday or Wednesday to share further details regarding the reciprocal tariff strategy. He mentioned that he had initially disclosed his plans for these tariffs on Friday to ensure "that we’re treated evenly with other countries." Trump has persistently voiced concerns about the European Union's 10 percent tariffs on auto imports being considerably higher than the 2.5 percent tariff rate applicable to American vehicles. He often remarks that Europe "won’t take our cars" while sending millions across the Atlantic annually. Nevertheless, the U.S. benefits from a 25 percent tariff on pickup trucks, which is a critical profit generator for American automakers like General Motors, Ford, and Stellantis. According to data from the World Trade Organization, the average trade-weighted tariff rate in the U.S. is around 2.2 percent, compared to India’s 12 percent, Brazil’s 6.7 percent, Vietnam’s 5.1 percent, and 2.7 percent for countries within the European Union.
