Trump Announces 25% Steel and Aluminum Tariffs, More Trade Duties Coming/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump announced that the U.S. will impose 25% tariffs on all steel and aluminum imports starting Monday, including from Canada, Mexico, and South Korea. He also plans to introduce “reciprocal tariffs” later in the week, targeting countries that impose higher duties on U.S. goods. The move has already shaken global markets, with South Korea’s leadership meeting to assess the impact.
Trump Announces 25% Steel and Aluminum Tariffs, More Trade Duties Coming – Quick Look
- New Tariffs: The U.S. will impose 25% tariffs on all imported steel and aluminum, including from Canada and Mexico.
- More Duties Coming: Trump hinted at more tariffs, including “reciprocal tariffs” on countries with higher duties on U.S. exports.
- Stock Market Reaction: U.S. and global markets dropped after the announcement, raising inflation concerns.
- Impact on Trade: South Korea’s leadership held an emergency meeting as its steel exports to the U.S. face steep penalties.
- Fast Fashion Exemptions: Trump delayed tariffs on small packages from retailers like Temu and Shein to allow customs officials to develop a plan.
Trump Announces 25% Steel and Aluminum Tariffs, More Trade Duties Coming – Deep Look
Trump Confirms 25% Tariffs on Steel & Aluminum Imports
“Any steel coming into the United States is going to have a 25% tariff,” Trump declared.
“Aluminum, too,” he added when asked about additional metals.
The tariffs will apply to all countries, including major U.S. trading partners like Canada, Mexico, and South Korea.
More Tariffs Coming: “Reciprocal Tariffs” by Midweek
Trump also signaled further trade measures, including “reciprocal tariffs” designed to match or exceed duties that other countries impose on American exports.
“If they are charging us 130% and we’re charging them nothing, it’s not going to stay that way,” Trump warned.
He said these tariffs could be announced as early as Tuesday or Wednesday, escalating trade tensions with key economic allies.
Financial Markets React: Stocks Drop, Inflation Concerns Rise
The announcement rattled financial markets, with stock prices falling on Friday, as investors reacted to:
- Fears of rising inflation, as businesses will likely pass costs to consumers.
- Growing uncertainty in global trade, particularly with Canada, Mexico, and South Korea.
South Korea Holds Emergency Meeting Over Tariffs
South Korea, one of the biggest exporters of steel to the U.S., immediately responded to Trump’s announcement.
- Acting President Choi Sang-mok convened a high-level meeting Monday to assess the impact and discuss possible countermeasures.
- Steel stocks dropped in South Korea as markets opened Monday, with companies like POSCO and Hyundai Steel seeing sharp declines.
- South Korea exported $4.8 billion worth of steel to the U.S. in 2024, accounting for 14% of its global steel trade.
While Seoul has not yet announced retaliatory measures, trade officials warned that the tariffs could severely impact South Korean manufacturers.
Canada and Mexico Targeted Again
Despite pausing a 25% tariff on all Canadian and Mexican goods last week, Trump reinstated duties on steel and aluminum, while warning that more tariffs could follow.
Both Canada and Mexico have vowed to push back, with Canadian Prime Minister Justin Trudeau calling Trump’s trade policies a “reckless approach to economic stability.”
Fast Fashion & Small Package Tariffs Delayed
While Trump is pushing forward on industrial tariffs, he announced that he will delay tariffs on millions of small package imports from retailers like Temu and Shein.
- These shipments have previously been exempt from tariffs.
- Trump said he wants customs officials to develop a process before implementing new duties.
- The delay gives Chinese e-commerce giants more time to adjust to potential trade restrictions.
Why Is Trump Moving So Aggressively on Trade?
Trump’s tariff push is happening much earlier in his second term compared to his first.
- Revenue Generation: Trump sees tariffs as a revenue source to help close the budget deficit.
- Economic Leverage: The tariffs are a negotiating tool to pressure trade partners into new agreements.
- Populist Strategy: Trump’s base supports tariffs, seeing them as protecting American manufacturing jobs.
What’s Next? More Trade Battles Ahead
With more tariffs coming midweek, the global trade landscape is shifting rapidly.
- U.S. companies could face higher costs, leading to price increases for consumers.
- Trade partners may retaliate, creating potential economic disruptions.
- Trump’s “America First” trade stance is back in full force, signaling more aggressive policies in the months ahead.
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