Trump slaps tariffs on steel, aluminium

New Delhi, Feb 11: US President Donald Trump has declared a 25% import tariff on steel and aluminium, tightening America’s economic drawbridge in what he calls the “beginning of making America rich again.” The policy, which applies universally without exceptions, is a significant escalation of trade barriers, with Canada, Brazil, and Mexico, America’s biggest steel suppliers among the hardest hit.

Trump’s tariff escalation has sparked global fears, and the majority of countries, including India, sustained market decline.

Despite warnings from trading partners and domestic industries reliant on cheap imports, Mr Trump insists that the measure will revitalise American manufacturing. “Our nation requires steel and aluminium to be made in America, not in foreign lands,” he said, brushing off concerns about rising consumer costs with the promise that “ultimately, it will be cheaper.”

This latest salvo in Mr. Trump’s trade war echoes his first-term tariffs in 2018, which agitated global supply chains but were later softened with exemptions. Investors seem split on whether history will repeat itself. While shares in U.S. steel firms surged on the news, wider market reactions remained subdued.

The policy has ignited immediate backlash, particularly in Canada, which supplies over half of America’s imported aluminium. François-Philippe Champagne, Canada’s minister of innovation, as reported by media, castigated the tariffs as “totally unjustified” as reported by media warning that they threaten key U.S. industries from automotive to defence.

The Canadian government is already weighing retaliation, with some lawmakers calling for countermeasures against U.S. exports. Meanwhile, other trade partners are watching closely. The European Union, which faced similar tariffs under Trump’s first presidency, may respond in kind, while China, though a less direct target, could seize on the disruption to push its own steel exports elsewhere.

India, a rising force in global steel production, may not be a primary target, but it has reason to be wary. Indian steelmakers, who have steadily increased exports to the U.S. in recent years, could see their competitiveness eroded. Worse, the move threatens to distort global markets, potentially flooding Asian economies with surplus steel from nations that may not go to the U.S. market.

Prime Minister Narendra Modi is set to meet Mr. Trump in the coming days, a visit that was intended to showcase growing Indo-American ties. PM Modi is likely to push for assurances that it will not be caught in the tariff dragnet.

Beyond steel, the move signals a broader shift. Mr. Trump hinted that pharmaceuticals and computer chips, both industries where India has a significant stake, could be next on his protectionist agenda. This raises uncomfortable questions for New Delhi.

With global trade increasingly shaped by nationalist impulses, many countries need to brace for renewed turbulence. Mr. Trump may be making America first—but at what cost to everyone else?