Trump will impose 25% tariffs on steel and aluminum.
Former President Donald Trump stated that on Monday, February 10, 2025, he will announce a 25% tariff on all steel and aluminum imports, including those from Canada and Mexico. Additionally, he plans to introduce other import duties later in the week.
Trump summarized the tariff plan: “If they tax us, we tax them.
According to government data and the American Iron and Steel Institute, the top sources of U.S. steel imports are Canada, Brazil, and Mexico, followed by South Korea and Vietnam.
Canada, with its abundant hydropower, is the leading supplier of primary aluminum to the U.S., making up 79% of total imports in the first 11 months of 2024.
While speaking to reporters aboard Air Force One en route to the NFL Super Bowl in New Orleans, Trump stated that he would announce new metal tariffs on Monday.
He also mentioned that reciprocal tariffs would be announced on Tuesday or Wednesday, taking effect almost immediately. These tariffs will apply to all countries and match the rates imposed by each nation.
Canadian Innovation Minister François-Philippe Champagne emphasized the importance of Canadian steel and aluminum to key U.S. industries such as defense, shipbuilding, and automotive in a post.
He reiterated Canada’s dedication to defending its workers and industries.
Meanwhile, Trump stated that while Japan’s Nippon Steel would be permitted to invest in U.S. Steel, it would not be allowed to hold a majority stake.
Trump expressed confidence in U.S. Steel, stating that tariffs would help make the company successful again and praising its management.
Tariff Policy & Border Security
Trump plans to hold a news conference on Tuesday or Wednesday to outline his reciprocal tariff plan, aiming for fair trade. He has criticized the EU’s 10% auto tariff, much higher than the U.S.’s 2.5% rate, though the U.S. itself imposes a 25% tariff on pickup trucks, benefiting domestic automakers.
The U.S. has an average tariff rate of 2.2%, compared to India’s 12% and the EU’s 2.7%. Chris Swonger, CEO of the Distilled Spirits Council, warned that new steel tariffs could lead the EU to reimpose a 50% duty on American whiskey, threatening thousands of distilleries.
Separately, Trump criticized Canada and Mexico for insufficient border security and threatened a 25% tariff on all imports unless stronger measures were taken. While both countries have made initial concessions, Trump remains unsatisfied, stating, “It’s not good enough.
Nippon Steel chose not to respond to Trump’s recent statements.
Questions About Quotas
During his first term, Trump imposed tariffs of 25% on steel and 10% on aluminum but later granted duty-free exemptions to some trade partners, including Canada, Mexico, and Brazil. Mexico remains a key supplier of aluminum scrap and alloy.
Former President Joe Biden later negotiated duty-free quota agreements with the UK, the EU, and Japan. However, Trump’s announcement did not clarify whether those exemptions and quotas would remain in place.
Quebec Premier François Legault highlighted the province’s aluminum exports to the U.S., which account for 60% of its needs. He questioned whether the U.S. would prefer sourcing from China instead.
Legault also urged an immediate renegotiation of the free trade agreement with the U.S. rather than waiting until the scheduled review in 2026, stressing the need to end uncertainty.
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Steel mill capacity utilization rose above 80% in 2019 following Trump’s initial tariffs but has since declined due to China’s dominance in the sector, which has driven steel prices down. A Missouri aluminum smelter revived by the tariffs was shut down last year by Magnitude 7 Metals.
Kevin Dempsey, president and CEO of the American Iron and Steel Institute (AISI), expressed support for Trump’s commitment to strengthening the U.S. steel industry. He stated that the trade group looks forward to collaborating with the administration on a strong trade agenda to counter foreign market practices that disadvantage American steelmakers.
