TLDR
- Trump signs executive order for 25% tariffs on steel and aluminum from all countries, effective March 4, 2025
- No exemptions announced, though Australia might receive consideration due to trade surplus
- New reciprocal tariffs plan to be announced Tuesday/Wednesday, targeting countries with high tariff rates
- China has already retaliated to recent 10% US tariffs with duties on American goods
- Canada and Mexico face potential 25% tariffs over drug and migration issues
President Donald Trump signed an executive order Monday imposing 25% tariffs on steel and aluminum imports from all countries, marking a major shift in US trade policy. The new duties will take effect on March 4, 2025, according to White House officials.
The tariffs will apply universally, without exceptions or exemptions for any nation. “It’s 25% without exceptions or exemptions and that’s all countries, no matter where it comes from,” Trump told reporters in the Oval Office. However, he indicated that Australia might receive special consideration due to its trade surplus with the United States.
This latest move uses presidential authority under Section 232 of the Trade Expansion Act of 1962, building upon a previous investigation of steel and aluminum tariffs that Trump initiated during his first term. The action represents a tightening of earlier measures implemented in 2018.
The White House plans to announce additional trade measures this week, including reciprocal tariffs designed to address trade imbalances worldwide. Trump indicated these details would be revealed at a news conference on Tuesday or Wednesday.
The president also mentioned future discussions about potential tariffs on other products, including automobiles, semiconductors, and pharmaceuticals. These conversations are expected to begin in the coming weeks.
China has already responded to recent US actions. After Trump imposed 10% duties on Chinese goods, Beijing retaliated with tariffs on American products including liquefied natural gas, crude oil, and agricultural machinery. These Chinese measures went into effect over the weekend.
Canada and Mexico face potential inclusion in the new tariff structure. Both nations could see duties imposed on March 4, tied to concerns about illegal drugs and migration. Trump stated in a Fox News interview that concessions offered by these countries were “not good enough.”
The Canadian Chamber of Commerce quickly criticized the announcement, stating that “moving forward with 25% tariffs on steel and aluminum is wrong on many levels.” Canada, as a major steel provider to the US, finds itself particularly affected by the new policy.
During Trump’s first term, the 2018 steel tariffs set rates at 25% for steel and 10% for aluminum, with China as the primary target. Many countries, including South Korea and Australia, secured exemptions. The status of these previous arrangements remains unclear under the new order.
Impacts
Economic experts have raised concerns about potential job impacts. Ryan Young of the Competitive Enterprise Institute pointed out that Trump’s previous metal tariffs created approximately 1,000 jobs in steel and aluminum industries but led to 75,000 job losses in sectors using these materials, such as automotive, construction, and beverages.
Capitol Economics suggests the current tariffs might have less impact than the 2018 measures, citing increased US production and decreased demand in recent years. Stephen Brown, the group’s deputy chief North America economist, wrote that these factors could result in reduced effects on overall prices compared to Trump’s first term.
The implementation of reciprocal tariffs presents logistical challenges. Professor Henry Gao, an international trade expert, warns that managing country-specific duties at US ports would require extensive bureaucratic coordination. The complexity of this undertaking could lead to delays at ports of entry.
Current data from the World Bank shows that the US maintains average tariff levels compared to other industrialized nations. This positioning suggests that a truly reciprocal trading system might actually require lowering duties for some countries while raising them for others.
Trump signed the order stating, “It’s a big deal, this is the beginning of making America rich again.” The administration promises more details about reciprocal tariffs and other trade measures in the coming days.
India might face particular scrutiny under the new trade policies. The country’s high tariff rates have drawn criticism from Trump’s team, with National Economic Council director Kevin Hassett describing India’s rates on US goods as “enormously high” in a recent CNBC appearance.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
