Trump’s Tariff Expansion: A New Wave of Trade Tensions

Trump Expands Tariffs on Steel and Aluminium Imports with 25% Duties, Escalating Trade Tensions and Reciprocal Measures Against Other Countries

President Donald Trump has vowed to protect America’s industries through bold efforts as he announced that his administration would impose a sweeping 25% tariff on all imports of steel and aluminum to the United States, the latest escalation of his trade policy. The tariffs will start this week along with other existing duties on metals.

While speaking to reporters aboard Air Force One en route to the Super Bowl, Trump confirmed the tariffs, stating, “We’ll also be announcing steel tariffs on Monday. Any steel coming into the United States is going to have a 25% tariff.” The news comes as part of his ongoing efforts to shield U.S. industries, particularly steel and aluminium, which he has long argued face unfair competition from international producers, particularly in Asia and Europe.

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Added to this, Trump offered other measures that include new trade actions he will implement. He hinted at yet another news conference, likely in the coming days, to announce reciprocal tariffs, with the U.S. imposing the same tariffs that other countries collect on American goods. “Very simply, it’s if they charge us, we charge them,” Trump said, echoing his ‘America First’ trade policy. This new move is on the same lines as the tariffs imposed during his first term in office, with Trump looking to strengthen U.S. industries against what he branded as unfair trade practices.

Indeed, Canada has, for a long time, remained the largest single source of importation of both steel and aluminium to the US. In 2024 alone, it sourced 79 percent of U.S. imports into those sectors while Brazil, Mexico, South Korea, and Vietnam trailed behind, in that order. The newly implemented policy has the potential of reigniting conflict with the North American neighbor since Canada has supplied the United States with materials from which the manufacturing of defense components, ship production, and production of automobiles depended.

Canadian Innovation Minister Francois-Philippe Champagne has said that the steel and aluminum of Canada plays a crucial role in supporting key U.S. industries, adding: “Ottawa will stand up for its workers and industries.” Similarly, Australian Trade Minister Don Farrell pointed out that Australia’s exports to the U.S. don’t only create well-paying American jobs but also support defense-related sectors, thus underlining the interconnectedness of international trade further.

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Trump’s reciprocal tariffs are a statement of long-enduring frustration for him on some issues with uneven trade agreements with countries like Europe, where even car imports invite a 10% tariff—it’s three-fold compared to U.S. policy, at an almost meagre 2.5% on U.S. imported autos. French President Emmanuel Macron expressed that he “would have many things to discuss” with Donald Trump about economic threats over tariff imposition. That’s where Macrons say clearly, Europe wasn’t the cause, China was. He warned that the tariffs would eventually hurt American consumers through increased costs and inflation.

Many analysts, however, argue that despite the assurance given by Trump to the foreign exporters, U.S. consumers would likely bear the brunt of these tariffs through higher prices. Yet, the president remains unconvinced of the fact that these measures will help usher in a “new golden age” for U.S. industry and jobs. Time will tell whether the tariffs deepen trade rifts or achieve their objective.

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