By Sarah Baafi
President Donald Trump has announced a significant expansion of U.S. trade barriers by imposing a 25% tariff on all steel and aluminium imports. This move is expected to increase the costs associated with importing these metals into the United States, despite warnings from Canada and other countries about potential retaliation. Trump emphasised that there would be no exceptions to these tariffs, stating he was “simplifying” the rules.
Trump believes this strategy will boost domestic production in the U.S., saying, “This is a big deal, the beginning of making America rich again.” He also stressed that American industries should return home: “Our nation requires steel and aluminium to be made in America, not in foreign lands”. However, concerns have been raised by U.S. businesses reliant on these imports.
Canada is particularly affected as it supplies over 50% of aluminium imported into the U.S. Canadian Minister of Innovation Francois-Phillippe Champagne described the tariffs as “totally unjustified,” highlighting their role in supporting key U.S. industries like defense and automotive. Ontario Premier Doug Ford criticised Trump for causing economic uncertainty by creating “constant chaos” with his policies.
The impact on global markets was mixed; shares of major U.S. steel manufacturers rose significantly ahead of the announcement, while other sectors showed muted responses due to skepticism about Trump’s commitment given his history of negotiating exemptions or delaying tariffs. In 2018, similar tariffs were imposed but later exempted for several countries including Canada and Mexico.
Trump hinted at further trade actions targeting pharmaceuticals and computer chips: “It’s time for our great industries to come back to America, this is just the beginning”. The move has sparked fears of escalating trade tensions globally as countries consider retaliatory measures against these broad tariffs without exemptions.
Source:BBC
