Trump announces 25% tariffs on all steel and aluminum imports to the US

US President Donald Trump has announced new 25 percent tariffs on all steel and aluminum imports to the US in addition to existing duties on metals. This was reported by Reuters.

He said he would announce new tariffs on metals on February 10.

According to the government and the American Iron and Steel Institute (AISI), the largest sources of steel imports to the United States are Canada, Brazil and Mexico, followed by South Korea and Vietnam.

Although China is the world’s largest steel producer and exporter, a very small share of steel products from this country is shipped to the United States. The 25% duty imposed in 2018 closed this market to most Chinese steel. In 2024, China exported 508 thousand short tons to the US, or 1.8% of total US steel imports.

Canada is the largest supplier of primary aluminum to the United States, accounting for 79% of total imports in the first 11 months of 2024.

During his first presidential term, Trump imposed tariffs of 25% on steel and 10% on aluminum under Section 232. He later granted exemptions to several trading partners, including Canada, Mexico, and Brazil. The Biden administration later agreed on a system of tariff quotas with the UK, EU, and Japan. It is not yet clear from Trump’s statement what will happen to the tariff exemptions and quota agreements.

The US president also said that this week he would announce retaliatory tariffs for countries that tax imports from the United States. According to Trump, they will take effect almost immediately. He believes that these duties should be in line with the rates of other countries. Trump plans to hold a press conference this week to provide more details on the plan.

According to the World Trade Organization, the weighted average tariff rate in the US is about 2.2%, compared to 12% for India, 6.7% – for Brazil, 5.1% – for Vietnam and 2.7% – for the EU.

In 2024, US steelmakers increased imports of rolled steel by 3.7% compared to 2023, to 22.5 million tons. This is evidenced by AISI data. Total steel imports (rolled products and semi-finished products) increased by 2.5% y/y – to 28.86 million tons over the year.