US President Donald Trump said he will introduce new 25% tariffs on all steel and aluminium imports into the US, on top of existing metals duties, in another major escalation of his trade policy overhaul.
Mr Trump, speaking to reporters on Air Force One on his way to the NFL Super Bowl in New Orleans, said he will announce the new metals tariffs today.
He also said he will announce reciprocal tariffs tomorrow or Wednesday, to take effect almost immediately, applying them to all countries and matching the tariff rates levied by each country.
“And very simply, if they charge us, we charge them,” Mr Trump said of the reciprocal tariff plan.
The largest sources of US steel imports are Canada, Brazil and Mexico, followed by South Korea and Vietnam, according to government and American Iron and Steel Institute data.
By a large margin, hydropower-rich Canada is the largest supplier of primary aluminium metal to the US, accounting for 79% of total imports in the first 11 months of 2024.
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“Canadian steel and aluminium support key industries in the US from defence, shipbuilding and auto,” Canadian Innovation Minister Francois-Philippe Champagne posted on X.
“We will continue to stand up for Canada, our workers, and our industries,” he added.
Mr Trump also said that while the US government would allow Japan’s Nippon Steel to invest in US 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,” Mr Trump said of US Steel.
Nippon Steel declined to comment on the latest announcements from Mr Trump.
Quota questions
President Trump during his first term imposed tariffs of 25% on steel and 10% on aluminium, but later granted several trading partners duty-free exemptions, including Canada, Mexico and Brazil. Mexico is a major supplier of aluminium scrap and aluminium alloy.
Former President Joe Biden later negotiated duty-free quota arrangements with Britain, the European Union and Japan. It was not immediately clear from Mr Trump’s announcement what will happen to those exemptions and quota arrangements.
“Quebec exports 2.9 million tons of aluminium to (the US), that is, 60% of their needs. Do they prefer to get supplies from China?” Francois Legault, premier of Quebec, 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,” he added.
Steel mill capacity usage jumped to levels above 80% in 2019 after Mr Trump’s initial tariffs, but has fallen since then as China’s global dominance of the sector has pushed down steel prices. A Missouri aluminium smelter revived by the tariffs was idled last year by Magnitude 7 Metals.
Mr Trump said he would hold a news conference tomorrow or Wednesday to provide detailed information on the reciprocal tariff plan, adding that he first revealed on Friday that he was planning reciprocal tariffs to ensure “that we’re treated evenly with other countries.”
The US president has long complained about the EU’s 10% tariffs on auto imports being much higher than the US car rate of 2.5%. He frequently states that Europe “won’t take our cars” but ships millions west across the Atlantic every year.
The US, however, enjoys a 25% tariff on pickup trucks, a vital source of profits for Detroit automakers General Motors, Ford and Stellantis’ US operations.
Read more: Trump’s EU tariff threats raises concern among leaders
The US trade-weighted average tariff rate is about 2.2%, according to World Trade Organisation data, compared to 12% for India, 6.7% for Brazil, 5.1% for Vietnam and 2.7% for European Union countries.
Meanwhile, China’s latest tariffs on US goods have come into force.
The levies were announced last week in response to Mr Trump’s decision to impose import taxes of 10% on all Chinese products.
The tariffs imposed by China include a 15% charge on US coal and liquified natural gas.
Border steps
In a separate Fox News interview, Mr Trump said Canada’s and Mexico’s actions to secure their US borders and halt the flow of drugs and migrants are insufficient ahead of a 1 March tariff deadline.
Mr Trump has threatened to impose tariffs of 25% on all Mexican and Canadian imports unless America’s two largest trading partners take stronger actions.
He paused the tariffs until 1 March 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, Mr Trump replied “No, it’s not good enough.”
“Something has to happen, it’s not sustainable, and I’m changing it,” he added.
Mr Trump did not say what Canada and Mexico needed to do to avoid broad tariffs on 1 March.
Commitment to ‘buying and owning’ Gaza
Separately, Mr Trump said he is committed to buying and owning Gaza, but could allow sections of the war-ravaged land to be rebuilt by other states in the Middle East.
“I’m committed to buying and owning Gaza. As far as us rebuilding it, we may give it to other states in the Middle East to build sections of it, other people may do it, through our auspices. But we’re committed to owning it, taking it, and making sure that Hamas doesn’t move back.
“There’s nothing to move back into. The place is a demolition site. The remainder will be demolished. Everything’s demolished,” he added.
Mr Trump also said he was open to the possibility of allowing some Palestinian refugees into the United States, but would consider such requests on a case-by-case basis.
Ezzat El Rashq, a member of the Hamas political bureau, condemned Mr Trump’s latest remarks on buying and owning Gaza, the group said in a statement.
“Gaza is not a property to be sold and bought. It is an integral part of our occupied Palestinian land,” and Palestinians will foil displacement plans, Mr Rashq added.
Mr Trump has spoken of permanently displacing Palestinians who live in Gaza and would create a “Riviera of the Middle East.”
