- The White House announced 25% tariffs on all steel and aluminum imports.
- The US is the world’s top steel importer, sourcing mainly from Canada, Mexico, and Brazil.
- Higher tariffs may increase US inflation, affecting industries reliant on these metals.
President Donald Trump on Monday ordered 25% tariffs on all steel and aluminum imports, escalating his trade moves against some of the nation’s closest allies.
“Any steel coming into the United States is going to have a 25% tariff,” Trump said on Sunday on board Air Force One en route to the Super Bowl. At the time, he did not provide further details.
Trump told reporters on Monday that he would announce “reciprocal tariffs,” likely on Tuesday or Wednesday, on countries that have placed tariffs on US goods.
“If they are charging us 130% and we’re charging them nothing, it’s not going to stay that way,” Trump said.
Steel and aluminum were among the first products that Trump targeted during his first term. He imposed tariffs of 25% on steel and 10% on aluminum but later granted some duty-free exemptions for trade partners, including Canada, Mexico, and Brazil.
Since companies tend to pass the higher price of tariffs on to their customers, the move could boost prices of construction, cars, and travel.
The US is the world’s top importer of steel, which is used in a wide range of industries, from construction to automobile manufacturing.
Canada, Mexico, and Brazil were the US’ largest steel and iron suppliers last year by dollar value, Census Bureau data showed.
Canada and Mexico were also among the top countries for aluminum and bauxite imports. The United Arab Emirates ranked No. 2, based on 2024 Census Bureau data by dollar value. Aluminum is used for aircraft construction, consumer products like cans, and construction, among other industries.
Shortly after taking office, Trump imposed a 25% tariff on most goods from Canada and Mexico. He later announced that those tariffs would be delayed 30 days after he reached a deal with both countries to strengthen border security.
Trump also placed a 10% tariff on imports from China, and China quickly announced retaliatory tariffs on coal, crude oil, agricultural machinery, and some vehicles. The tariffs announced Monday come in addition to the 10% tariffs on other goods, Bloomberg reported.
Charles Johnson, the president of the US Aluminum Association, said in a February 1 statement: “To ensure that American aluminum wins the future, President Trump should exempt the aluminum metal supply needed for American manufacturers, while continuing to take every possible action at the US border against unfairly traded Chinese aluminum.”
There are fears that higher US tariffs on imports from key trade partners could drive up inflation in the US — at least in the short term.
“Constructing and ramping up new smelters/mills can take three or more years,” Morgan Stanley analysts Carlos De Alba and Justin Ferrer said in a January 29 report. “Hence, any import tariffs applied to metals or mined products are likely to result in higher domestic prices for local buyers of these materials.”
