U.S. President Donald Trump announced on Sunday that he will introduce 25 percent tariffs on all steel and aluminum imports into the U.S., in addition to existing metals duties, in another significant escalation of his trade policy overhaul. Speaking to reporters on Air Force One on his way to the NFL Super Bowl in New Orleans, Trump said he will announce the new metals tariffs on Monday. He also said he would announce reciprocal Trump tarriffs Canada on Tuesday or Wednesday, which will take effect almost immediately. These tariffs will apply to all countries and match the tariff rates levied by each country.
“And very simply, if they charge us, we charge them,” Trump said of the reciprocal tariff plan.
A Canadian government source told Reuters that Ottawa would not react to Trump’s steel and aluminum tariff announcement until it has more information or sees a written order from Trump. Trump also said that while the U.S. government would allow Japan’s Nippon Steel to invest in U.S. Steel, it would not allow this to become a majority stake.
“Tariffs are going to make it very successful again, and I think it has good management,” Trump said of U.S. Steel. Nippon Steel declined to comment on the latest announcements from Trump.
Trump Tarriffs Canada: Quota Questions
During his first term, Trump imposed 25 percent tariffs on steel and 10 percent on aluminum. However, he later granted duty-free exemptions to several trading partners, including Canada, Mexico, and Brazil. Former president Joe Biden later negotiated duty-free quota arrangements with Britain, the European Union, and Japan. It was not immediately clear from Trump’s announcement what would happen to those exemptions and quota arrangements.
Steel mill capacity usage jumped above 80 percent in 2019 after Trump’s initial tariffs but has fallen as China’s global sector dominance has pushed steel prices down. Magnitude 7 Metals idled a Missouri aluminum smelter revived by the tariffs last year. According to government and American Iron and Steel Institute data, the largest sources of U.S. steel imports are Canada, Brazil, Mexico, South Korea, and Vietnam.
By a large margin, hydro-power-rich Canada is the largest supplier of primary aluminum metal to the United States, accounting for 79 percent of total imports in the first 11 months of 2024. Mexico is a major supplier of aluminum scrap and aluminum alloy.
“The Trump administration is threatening to attack the aluminum and steel sectors – sectors where the United States depends largely (on others). Quebec exports 2.9 million tons of aluminum to them, 60 percent of their needs. Do they prefer to get supplies from China?” Francois Legault, premier of Quebec – a major aluminum supplier, said on X.
“All this shows that we must begin to renegotiate our free trade agreement with the United States as soon as possible and not wait for the review planned for 2026. We must put an end to this uncertainty.”
Trump Tarriffs Canada Matching rates
Trump said he would hold a news conference on Tuesday or Wednesday to provide detailed information on the reciprocal tariff plan. He first revealed on Friday that he was planning reciprocal tariffs to ensure “that we’re treated evenly with other countries.”
The new U.S. president has long complained that the EU’s 10 percent tariffs on auto imports are much higher than the 2.5 percent rate on U.S. cars. He frequently states that Europe “won’t take our cars” but ships millions west across the Atlantic every year.
The U.S., however, enjoys a 25 percent tariff on pickup trucks, a vital source of profits for Detroit automakers General Motors, Ford, and Stellantis’ U.S. operations.
According to World Trade Organization data, the U.S. trade-weighted average tariff rate is about 2.2 percent, compared to 12 percent for India, 6.7 percent for Brazil, 5.1 percent for Vietnam, and 2.7 percent for European Union countries.
Border steps
In a separate Fox News interview, Trump said Canada’s and Mexico’s actions to secure their U.S. borders and halt the flow of drugs and migrants are insufficient ahead of a March 1 tariff deadline.
Trump has threatened to impose 25 percent tariffs on all Mexican and Canadian imports unless America’s two largest trading partners take more decisive action. He paused the tariffs until March 1 after some initial border security concessions from the two countries, with Mexico pledging to add 10,000 National Guard troops to its border and Canada deploying new technology and personnel and taking new anti-fentanyl steps.
Asked whether Mexico’s and Canada’s actions were good enough, Trump replied: “No, it’s not good enough,” Trump said. “Something has to happen; it’s not sustainable, and I’m changing it.”
Trump tariffs Canada did not say what Canada and Mexico needed to do to avoid broad tariffs on March 1.