US President Donald Trump signed executive orders planning to impose tariffs on steel and aluminium imports starting from March 12, ramping up a long-promised trade war, even after the warning from Europe and china.
According to reports, Trump said on Monday in the Oval Office, “Today I’m simplifying our tariffs on steel and aluminum. It’s 25 percent without exceptions or exemptions.”
The executive Order released following the statement said that, “As of March 12, 2025, all imports of aluminum articles and derivative aluminium articles from Argentina, Australia, Canada, Mexico, EU countries, and the UK shall be subject to the additional ad valorem tariff.”
Trump issued a separate order for steel, applying them on all countries impacted by the aluminium tariffs along with Brazil, Japan, and South Korea, additionally. The US data also showed that Canada and Mexico are the largest steel importers to the United States, along with Brazil and South Korea being the major steel producers.
He also indicated that he has plans to extend tariffs onto other industries like automobiles, pharmaceuticals, and computer chips.
National Economic Council Director Kevin Hassett told CNBC, “President Trump has made it clear that an important part of an America First Golden Age is steel production.”
Trump also promised an announcement this week on broader “reciprocal tariffs” to align in par with the levies that US products are charged with, in other countries.
During his 2017-2021 presidency, Trump had imposed sweeping tariffs as he believed US industries faced unfair competition from Asian and European countries. Canadian steelmakers cautioned about a “massive” disruption, while the European Commission stated it would “take action to safeguard the interests of European businesses, workers, and consumers against unjustified measures.”
French President Emmanuel Macron vowed in an interview aired Sunday to go head-to-head with Trump over his wider tariff threats against the European Union. However, he said the United States should focus its efforts on China.
Around 25 percent of European steel exports go to the United States, according to consultancy Roland Berger. while Britain’s steel industry body called the tariff plan a “devastating blow.”
Trump went ahead with tariffs on China, the world’s second-biggest economy, with products entering the United States facing an additional 10 percent levy.
Chinese retaliatory tariffs targeting US coal and liquified natural gas took effect on Monday. Chinese foreign ministry spokesman Guo Jiakun shared his view that there is no winner in a trade war and tariff war.
Trump said he had secured an agreement for Japan’s Nippon Steel to make a major investment in US Steel, instead of seeking to take over the troubled firm, during Japanese Prime Minister Shigeru Ishiba’s visit last week.
Wall Street’s major indices ended higher on Monday despite the tariff threat. Meanwhile, London and Frankfurt reached new record highs, while Asian markets showed mixed performance on Tuesday. The dollar also strengthened against the Canadian dollar, the Mexican peso, and the South Korean won on Monday.