Trump announces sweeping steel, aluminium tariffs, sending shockwaves across global markets
New Delhi, Feb 1: U.S. President Donald Trump has declared his intention to impose a 25% tariff on all steel and aluminium imports into the United States, a decision set to have a major impact on Canada, the nation’s largest aluminium supplier.
Trump’s decision to impose a 25% tariff on steel and aluminium imports will make things tougher for Indian steel producers also as it will increase global competition and may push down domestic prices.
The announcement, made while Trump was en route from his Mar-a-Lago resort in Florida to the Super Bowl in New Orleans, marks a renewed escalation in his nationalist trade policies.
In addition to the steel and aluminium tariffs, Trump indicated that further reciprocal tariffs would be unveiled later in the week, targeting countries that impose import taxes on U.S. goods. However, he did not specify which nations would be affected or whether any exemptions would be granted.
Canada and Mexico, two of the United States biggest steel trading partners, are likely to bear the brunt of the policy. Canada is home to a substantial portion of North America’s steel production, concentrated in the province of Ontario.
South Korea, another major exporter of steel to the U.S., also felt the immediate impact. Stocks of key South Korean steel and automotive companies plummeted following the announcement. Shares of steel manufacturer POSCO Holdings fell by as much as 3.6%, while Hyundai Steel dropped 2.9% as reported by the media.The auto industry was not spared either, with Kia Corp shares declining by 3.6% in early trading.
Trump’s renewed tariff strategy echoes his first term in office, when he imposed similar levies of 25% on steel and 10% on aluminium imports from Canada, Mexico, and the European Union, media reports. Those tariffs were lifted for Canada and Mexico after a year, though restrictions on the EU persisted until 2021.
Trump has long supported tariffs as a cornerstone of his economic agenda, arguing that they safeguard American jobs, boost domestic industry, and generate tax revenue. His latest moves have already provoked retaliation from China, which imposed counter-tariffs on U.S. goods.
Earlier this month, Trump had also threatened to implement a 25% import tax on Canadian and Mexican products, though he later postponed the plan for 30 days following discussions with the leaders of both nations. Meanwhile, Trump has enacted new 10% levies on all Chinese imports, prompting swift retaliation from Beijing.
During his flight to New Orleans aboard Air Force One, Trump hinted at additional tariff measures, stating that further retaliatory duties would be announced “Tuesday or Wednesday” and enforced “almost immediately.”
“The ones that are taking advantage of the United States, we’re going to have reciprocal [tariffs],” he said, as reported by the BBC. “It’ll be great for everybody, including other countries.”
Gulf of America
Trump also signed a proclamation designating February 9 as “Gulf of America Day,” reflecting his decision to rename the Gulf of Mexico. Mexico has contested the move, arguing that international maritime laws prevent unilateral name changes beyond a country’s territorial waters.
When questioned about his communication with Russian President Vladimir Putin, Trump refused to disclose details. “I don’t want to talk about it, and if we are talking, I don’t want to tell you about the conversations too early, but I do believe we’re making progress,” he said as reported by BBC, hinting at a potential future meeting.
Trump also reiterated his assertion that the U.S. could annex Canada and the Gaza Strip. He suggested that Canada would prosper as the “51st state” and claimed he was “committed to buying and owning Gaza.”
With trade tensions escalating and geopolitical controversies mounting, Trump’s latest tariff push is expected to have far-reaching economic and diplomatic consequences in the weeks ahead.
