United States President, Donald Trump has announced plans to impose a 25% import tax on all steel and aluminum entering the country, a move expected to have the greatest impact on Canada.
He also stated that a further announcement would be made later in the week regarding reciprocal tariffs on nations that impose taxes on U.S. imports, according to BBC NEWS.
However, he did not specify which countries would be targeted or whether any exemptions would apply.
Speaking aboard Air Force One on Monday, Trump said he would impose tariffs on “everybody” for steel and aluminum.
“Any steel coming into the United States is going to have a 25% tariff,” he said.
The decision marks a further escalation in Trump’s trade policy, which has already prompted retaliation from China.
“If they charge us, we charge them,” Trump added.
Canada and Mexico are among the U.S.’s largest steel trading partners, with Canada being the top supplier of aluminum.
During his first term, Trump imposed 25% tariffs on steel and 10% on aluminum imports from Canada, Mexico, and the European Union.
However, the U.S. reached a deal a year later with Canada and Mexico to lift those tariffs, while the EU import taxes remained in place until 2021.
In response, Ontario Premier Doug Ford criticized Trump in an online post, accusing him of “shifting goalposts and constant chaos, putting our economy at risk.” Ontario is the center of Canada’s steel production.
Canadian political adviser Catherine Loubier said she believed Trump’s threats were real but remained optimistic that a solution could be found due to the deep economic ties between the two countries.
“Hundreds of thousands of jobs in the US are linked to the steel and aluminium input from Canada into the US economy,” she said.
“I think there’s a lot at stake and nobody’s winning with these tariffs, that’s for sure.”
Trump’s remarks led to a drop in shares of major South Korean steel and car manufacturers. South Korea is a key steel exporter to the U.S.
