President Donald Trump is set to announce new tariffs on steel and aluminum imports, adding to the existing trade measures in place. The announcement will follow a separate news conference, marking a significant shift in the U.S. trade policy landscape. These tariffs will be applied on top of existing ones, with steel facing a 25% tariff and aluminum a 10% tariff, echoing similar measures initially implemented in 2018.
The United States imports a substantial portion of its steel, with Canada being the largest exporter, accounting for nearly a quarter of the imports by weight. Mexico follows as the third-largest exporter, contributing about 12%. Despite these imports, domestic steel production has seen an uptick, covering approximately two-thirds of the drop in imports. Between 2017 and 2019, steel imports fell by 27%, partially due to tariffs targeting countries like China.
The demand for steel in the U.S. remains high, driven by industries such as automaking, aerospace, oil production, construction, and infrastructure. Tens of millions of tons are consumed annually, underscoring the material's critical role in the economy. However, domestic production has not kept pace with this demand, experiencing a 2% decline last year compared to 2023 and a near 10% decrease from a decade ago.
In 2018, Trump introduced initial tariffs of 25% on steel and 10% on aluminum to bolster domestic production and counter foreign competition. While these tariffs were lifted for Canada and Mexico in 2019 following negotiations, the upcoming announcement suggests a renewed focus on leveraging tariffs as a tool for economic strategy.
“Very simply, it’s if they charge us, we charge them,” – President Donald Trump
This statement reflects Trump's rationale behind the reciprocal nature of these tariffs, aiming to create parity in international trade relationships. The new tariffs are expected to impact not only foreign exporters but also domestic industries reliant on imported steel and aluminum.
