While traveling to New Orleans aboard Air Force One for the Super Bowl, US President Donald Trump told reporters that he would announce an additional 25% tariff on all steel and aluminum imports to the US, on top of existing metal duties.
Furthermore, Trump stated that he would introduce additional reciprocal tariffs, matching the tariff rates imposed by other countries. This additional tariff may impact trade with Canada, Brazil, Mexico, South Korea, and Vietnam, as they are the US’ largest steel exporters.
He stated that the details of this reciprocal tariff plan would be announced at a news conference on Tuesday or Wednesday, which will take effect immediately after the announcement.
Among these countries, Canada remains the US’s largest aluminum supplier, accounting for 79% of total imports in the first 11 months of 2024. Canadian Innovation Minister Francois-Philippe Champagne posted on X, highlighting how Canadian steel and aluminum are essential to key US industries. He also reaffirms his nation’s commitment to protecting its own workers and industries.
During Trump’s first term, he imposed a tariff of 25% on steel and 10% on aluminum before granting duty-free exemptions to many countries, including Canada, Mexico, and Brazil. After President Joe Biden took office, he negotiated duty-free quota arrangements with Britain, the European Union, and Japan.
Currently, there is no clear detail of what will happen to those exemptions and quota arrangements. Francois Legault, premier of Quebec, stated the need to renegotiate the free trade agreement with the US as soon as possible to end this uncertainty.
Besides Canada, Trump also mentioned Japan and Europe, stating that Japan’s Nippon Steel may continue investing in US Steel but cannot be a majority stake. As for Europe, Trump has frequently criticized its 10% tariff on auto imports, highlighting that the US only imposes a 2.5% tariff on European cars.
According to World Trade Organization data, the US has an average tariff rate of 2.2%, notably lower than India, Brazil, Vietnam, and the European Union, which have rates ranging from 2.7% to 12%. Still, the US imposes a 25% tariff on pickup trucks, a key profit source for major American automakers like General Motors, Ford, and Stellantis.
