1 week ago
22
Former US President Donald Trump has announced plans to impose a 25% import tax on all steel and aluminum entering the United States, a move expected to have the biggest impact on Canada, the nation’s largest supplier of aluminum.
Speaking aboard Air Force One en route to the Super Bowl in New Orleans on Sunday, Trump emphasised his administration’s intention to impose reciprocal tariffs on countries that tax U.S. imports.
“If they charge us, we charge them,” he declared, though he did not provide specifics on which nations would be targeted or whether exemptions would be granted.
Canada and Mexico, two of the US’s largest steel trading partners, have expressed concern over the announcement. Ontario Premier Doug Ford accused Trump of “shifting goalposts and constant chaos, putting our economy at risk.”
Canada’s steel production is heavily concentrated in Ontario, making it particularly vulnerable to the tariffs.
The announcement comes after Trump’s previous tariffs of 25% on steel and 10% on aluminum during his first term, which strained trade relations with Canada, Mexico, and the European Union. While the tariffs were later lifted for Canada and Mexico, they remained in place for the EU until 2021.
Trump’s remarks also rattled Asian markets, with stocks of major South Korean steel and automotive companies taking a hit. Shares of steel giant POSCO Holdings dropped 3.6%, while Hyundai Steel and Kia Corp saw declines of 2.9% and 3.6%, respectively. South Korea is a key exporter of steel to the US.
The tariff announcement marks yet another escalation in Trump’s trade policy, which has already provoked retaliation from China. Earlier this month, he threatened 25% import duties on Canadian and Mexican products, only to delay the decision for 30 days following discussions with both nations’ leaders.
In response to previous US levies, Beijing imposed its own tariffs, which took effect on Monday. Trump hinted at further “tit-for-tat” tariffs to be announced “Tuesday or Wednesday” that would take effect “almost immediately.”
“The ones that are taking advantage of the United States, we’re going to have reciprocal [tariffs],” Trump said. “It’ll be great for everybody, including other countries.”
During the flight to New Orleans, Trump stirred controversy by suggesting the US could “take over” Canada, claiming it would fare better as “the 51st state.” He also made an unlikely statement about being “committed to buying and owning Gaza.”
These remarks follow his proclamation renaming the Gulf of Mexico as the “Gulf of America,” a move Mexico has contested, citing international maritime law.
When asked about recent interactions with Russian President Vladimir Putin, Trump was cryptic. “I don’t want to talk about it,” he said, but hinted at a potential meeting “at the right time.”
As Trump’s tariff strategy unfolds, international markets and trade partners are bracing for the economic ripple effects of his latest policy maneuvers.
Chioma Kalu
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