Canadian flags, Mexican and Chinese.
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US President Donald Trump said on Sunday that he would introduce new 25% tariffs in all imports of steel and aluminum to the US, in the top of existing metal tasks, in another great escalation of his policy regulation trading.
Trump, speaking in front of reporters at Air Force One on his way to the NFL Super Bowl in New Orleans, said he would announce new metal tariffs on Monday.
He also said he would notify reciprocal tariffs on Tuesday or Wednesday, to come into force almost immediately, applying them to all countries and matching the tariff fees set by each country.
“And very simply, if they charge us, we charge them,” Trump told the reciprocal tariff plan.
The largest sources of steel imports in the US are Canada, Brazil and Mexico, followed by South Korea and Vietnam, according to data from the US government and the Institute of Iron and Steel.
With a large margin, Canada rich in hydropower plants is the largest supplier of primary aluminum metals in the US, which accounts for 79% of total imports in the first 11 months of 2024.
“Canadian Steel and Aluminum support the main industries in the US from protection, shipbuilding and vehicle,” Canadian Minister of Francois-Philippe Champagne posted on X.
“We will continue to stand for Canada, our workers and our industries.”
Trump also said that while the US government would allow Japan’s Nippon Steel to invest American steelwould not allow this to become a part of the majority.
“Tariffs will make it very successful again, and I think there is good management,” Trump told US Steel.
Nippon Steel refused to comment on the recent announcements from Trump.
Quota questions
Trump, during his first term, set a 25% tariff on steel and 10% on aluminum, but later gave several trading partners taxless exemptions, including Canada, Mexico and Brazil. Mexico is a large supplier of aluminum scrap and aluminum alloy.
Former President Joe Biden later negotiated arrangements of tasked quotas with Britain, the European Union and Japan. It was not clear immediately from Trump’s announcement what would happen to those quota exceptions and arrangements.
“Quebec exports 2.9 million tonnes of aluminum to (sh.ba), that is, 60% of their needs. Do they prefer to receive supplies from China?” Francois Legault, Quebec’s prime minister, told X.
“All this shows that we must start renegotiating our Free Trade Agreement with the United States as soon as possible and not wait for the planned review for 2026. We must end this uncertainty . “
The use of steel mill capacity was over 80% in 2019 after Trump’s initial tariffs, but has fallen since China’s global predominance has reduced steel prices. An aluminum melting in Missouri resurrected from tariffs was emptied last year from Warehouse 7 metals.
Matching fees
Trump said he would hold a press conference on Tuesday or Wednesday to provide detailed information on the reciprocal tariff plan, adding that he first revealed Friday that he was planning mutual fees to ensure “we were treated equally with other countries. “
The new US president has long complained about 10% EU tariffs on imports of vehicles that are much higher than the rate of US cars of 2.5%. He often states that Europe will not get our cars “but sends millions west across the Atlantic every year.
However, the US enjoys a 25% fee in the pickup trucks, a vital source of profits for Detroit motorists General Motors, Ford AND Stellantis‘American operations.
The average rate of US trade weight tariffs is about 2.2%, according to World Trade Organization data, compared to 12% for India, 6.7% for Brazil, 5.1% for Vietnam and 2.7% for European Union countries.
Border steps
In a special Fox News interview, Trump said Canada and Mexico’s actions to secure their US borders and stop drug flow and migrants are insufficient before a March 1 tariff term.
Trump has threatened to impose 25% tariffs on all Mexican and Canadian imports unless the two largest trading partners of America take stronger actions. He stopped tariffs until March 1 after some initial border security omissions from both countries, with Mexico pledging to add 10,000 National Guard troops to its border and Canada by placing new technologies and staff and taking new steps Anti-Fentanil.
Asked if Mexico and Canada’s actions were good enough, Trump replied, “No, it’s not that good,” Trump said. “Something has to happen, it’s not stable and I’m changing it.”
Trump did not say what Canada and Mexico had to do to avoid extensive fees on March 1 to notify 25% steel and aluminum tariffs in the latest trade escalation