Trump's Bold Move: 25% Tariffs on Steel and Aluminium Set to Shake Global Trade

President Donald Trump announced plans to impose a 25% import tax on all steel and aluminium entering the United States, with significant implications for Canada, a major trading partner. In a statement aboard Air Force One, Trump has made it clear that the tariffs will apply to all imports and hinted at reciprocal tariffs against countries that impose their own taxes on US goods.

This escalation in trade policy comes amidst existing tensions, particularly with China, which has already retaliated against US tariffs with its own import duties. Canadian political leaders expressed concern over how these tariffs will impact their economy, emphasizing the interconnectedness of the US and Canadian markets, where many jobs depend on steel and aluminium exports.

The UK Steel trade body warned that US tariffs would deal a ‘devastating blow’ to British steel producers as well. With production costs set to rise due to these tariffs, American manufacturers—especially in the automotive and beverage sectors—could pass these increased costs onto consumers.

Despite a history of similar tariffs during Trump’s first term, Canadian Premier Doug Ford criticized the unpredictability of Trump’s trade policy and its potential risks to the economy. The EU and Australia are also monitoring the situation closely, with the EU asserting that it has yet to receive formal notification regarding new tariffs, but is prepared to respond if necessary.

Responses from global markets included a drop in shares of South Korean steelmakers and a record high in gold prices, reflecting uncertainty in the wake of Trump’s announcements. Amidst the backdrop of trade wars and economic strains, Trump’s focus on tariffs remains central to his administration’s economic strategy.