President Trump Announces 25% Tariffs on Steel and Aluminium Imports

The United States is set to introduce 25% tariffs on steel and aluminium imports this week, President Donald Trump announced on the 9th of February. This marks the latest in a series of trade measures introduced under his new presidency. 

The US president stated that the tariffs would apply to "any steel entering the United States," adding that they would also cover aluminium imports. Trump previously implemented similar tariffs during his presidency from 2017 to 2021, arguing that US industries needed protection from what he deemed unfair competition from Asian and European nations. 

According to US trade data, Canada is the leading exporter of steel and aluminium to the United States, followed by Brazil, Mexico and South Korea. Since taking office, Trump has demonstrated a willingness to use tariffs as a financial tool, targeting key trading partners such as China, Mexico, and Canada. Initially, he suspended the 25% tariffs on Canada and Mexico for a month after both nations agreed to take measures against the flow of fentanyl and undocumented migrants entering the US. However, tariffs against China have remained in place and, as of 11 February, Chinese goods entering the US will face an additional 10% levy. 

Beijing has retaliated with targeted tariffs on American exports, including coal and liquefied natural gas, which will take effect on 10 February. 

According to Goldman Sachs, China’s latest tariffs impact $14 billion worth of US goods, whereas Trump’s newly announced tariffs apply to $525 billion of Chinese imports. Trump has also pledged to impose tariffs on the European Union, warning that he will soon introduce unspecified "reciprocal tariffs." 

The US trade deficit, the largest in the world, reached nearly $920 billion last year. While Trump has promised a "new golden era" for the country, he insists that the burden of tariffs will fall on foreign exporters rather than American consumers, despite most experts arguing otherwise. Nevertheless, after imposing tariffs on Mexico, Canada, and China earlier this month, he acknowledged that Americans might experience some "economic hardship." 

Trump has also used tariffs as a negotiating tactic to achieve broader political goals. Recently, he threatened to impose tariffs on Colombia after the country refused entry to US military planes carrying deported migrants. However, following a day of tense exchanges with Trump, the Colombian government reversed its stance. 

If you're doing business with the US or have a supply chain that includes the US, and you're looking to reassess your duty management strategy, contact the International Trade team at the Greater Manchester Chamber of Commerce by emailing international@gmchamber.co.uk today for expert guidance.