U.S. President Donald Trump announced a sweeping tariff increase on steel and aluminum imports Monday, raising rates to a flat 25% without exceptions. The move, set to take effect on March 4, aims to bolster domestic industries but risks escalating global trade tensions.
The new tariffs eliminate country exemptions and quota deals, affecting major suppliers like Canada, Mexico, Brazil, and South Korea. Trump emphasized the simplicity of the policy, stating, “It’s 25% for all countries, no matter where it comes from.” However, he hinted at a possible exemption for Australia.
The measure extends Trump’s 2018 Section 232 tariffs, reinforcing national security protections. It also mandates that steel must be “melted and poured” and aluminum “smelted and cast” within North America to curb circumvention of existing trade restrictions.
The decision has drawn swift backlash. Canada’s Industry Minister called the tariffs “totally unjustified,” while the European Commission and South Korea expressed concerns over economic fallout. Meanwhile, U.S. steelmakers saw stock gains as global steel markets reacted negatively.
Trump also signaled forthcoming reciprocal tariffs on nations imposing duties on U.S. goods, including potential levies on cars, semiconductors, and pharmaceuticals.
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