The decision, which is expected to drive up costs for import-dependent industries, has already drawn sharp criticism from major trading partners, including Canada, as well as from domestic businesses.
Trump has long championed protectionist economic policies. He framed the tariffs as a step toward reviving American manufacturing.
"This is a big dealâ€"the beginning of making America rich again," he declared. "Our nation requires steel and aluminium to be made in America, not in foreign lands."
Despite concerns about rising consumer prices, Trump insisted that, in the long run, the move would be cost-effective. He hinted at further trade measures, suggesting future tariffs could target pharmaceuticals and semiconductor imports.
The US, the world's largest steel importer, relies heavily on suppliers from Canada, Brazil, and Mexico. Canada, which provided over 50% of US aluminium imports last year, is expected to be the hardest hit by the new tariffs.
Canadian officials reacted with outrage, with Minister of Innovation Francois-Phillippe Champagne calling the decision "totally unjustified."
"Canadian steel and aluminium support key US industries from defence to automotive," Champagne stated. "This policy undermines North American competitiveness and security."
Ontario Premier Doug Ford accused Trump of destabilizing economic relations, warning that shifting trade policies put jobs at risk.
Meanwhile, industry lobbyists in Canada urged immediate retaliation, with lawmakers exploring ways to reduce dependence on the US market.
The tariffs prompted a surge in US steelmaker stock prices, with Cleveland-Cliffs gaining nearly 20%. However, broader market reactions remained subdued, as investors speculated whether Trump might later soften his stance or introduce exemptions.
Economic analysts likened the move to Trump's 2018 tariff campaign, which initially imposed levies on steel and aluminium but later carved out exceptions for countries like Canada, Mexico, and Australia.
Dartmouth College economist Douglas Irwin suggested the latest announcement could be a bargaining tactic rather than a firm policy shift.
"The biggest question is whether Trump is using this as leverage or truly committing to long-term protectionism."
Trump's track record includes a history of abrupt trade policy shifts. Just last week, he announced a 25% duty on Canadian and Mexican imports before postponing enforcement by 30 days. He also introduced a 10% tariff on Chinese goods, prompting retaliatory measures from Beijing.
Critics warn the tariffs will inflate costs for US industries reliant on imported metals, affecting sectors from construction to consumer goods. The US International Trade Commission previously estimated that similar tariffs raised domestic steel and aluminium prices by 2.4% and 1.6%, respectively.
White House officials defended the policy as a measure to curb unfair competition, particularly from China and Russia.
The administration introduced stricter regulations requiring steel to be "melted and poured" and aluminium to be "smelted and cast" in North America, aiming to prevent foreign suppliers from bypassing tariffs through third-party nations.
Nick Iacovella, spokesperson for the pro-tariff Coalition for a Prosperous America, emphasized concerns over a surge in steel imports from Mexico.
"There are still imbalances in US-Canada trade that need addressing," he said, adding that Trump's approach signals a broader effort to rebalance North American trade relations.
Wycliffe Nyamasege
Source : https://en.igihe.com/business/article/trump-imposes-25-tariffs-on-steel-and-aluminium-imports
