Trump to Announce 25% Tariffs on Steel and Aluminum, Plans for Reciprocal Duties

U.S. President Donald Trump confirmed on Sunday that he will impose new 25% tariffs on all steel and aluminum imports into the U.S. Additionally, he plans to introduce reciprocal duties in response to what he perceives as unfair trading practices.

Trump’s Tariff Plan and Timeline

Speaking to reporters aboard Air Force One, Trump stated that the 25% steel and aluminum tariffs will be announced on Monday, followed by the reciprocal tariffs on Tuesday or Wednesday. Both duties are set to take immediate effect.

Trump made these remarks while en route to the NFL Super Bowl in New Orleans. His flight path took him over the Gulf of America, a region he recently renamed from the Gulf of Mexico. On Sunday, he also signed an executive order officially designating February 9 as “Gulf of America Day.”

Trade Tensions Rise Amid New Tariff Threats

The president’s latest tariff move follows closely on the heels of his recent 10% duties on Chinese imports. The trade escalation has prompted Beijing to respond with its own set of retaliatory tariffs and economic measures.

Trump had previously threatened 25% tariffs against Canada and Mexico to push for stricter border controls but postponed these measures after receiving assurances from the two nations.

Key Exporters Impacted by New Tariffs

According to U.S. government data, the largest steel exporters to the U.S. include:

• Canada

• Brazil

• Mexico

• South Korea

• Vietnam

Canada also remains the top exporter of aluminum to the U.S.

During his first term, Trump imposed 25% tariffs on steel and 10% tariffs on aluminum but later granted duty-free quotas to key allies such as Canada, Mexico, and Brazil.

Trump to Hold Conference on Reciprocal Tariffs

The president announced plans for a press conference later this week to provide further details on reciprocal trade tariffs. He first revealed these plans on Friday as part of his broader trade policy agenda.

Trump has consistently criticized the imbalance in import duties imposed by other nations on U.S. goods. He has particularly targeted the European Union’s 10% tariff on U.S. auto imports, highlighting that the U.S. only charges a 2.5% import duty on European cars.

Potential Economic Impact of Tariffs

Economic analysts and Federal Reserve officials have raised concerns that Trump’s tariffs, which will primarily affect U.S. importers, could contribute to rising inflation in the coming months. The added costs of steel and aluminum imports may be passed down to consumers, leading to increased prices in various industries.

Key Takeaways:

• Trump to impose 25% tariffs on steel and aluminum imports.

• Reciprocal trade tariffs to be announced midweek.

• Canada, Brazil, Mexico, South Korea, and Vietnam among top steel exporters to the U.S.

• Economic analysts warn of potential inflationary effects.

With global trade tensions escalating, investors and businesses are closely monitoring the U.S. government’s next steps in trade policy.

(Sources: investing.com, reuters.com, ChatGPT)