Former President Donald Trump announced that the United States will impose a 25% tariff on all steel and aluminum imports, including those from Canada and Mexico. The announcement is set for Monday, with additional import duties expected later in the week. Speaking aboard Air Force One on Sunday, Trump confirmed that both steel and aluminum imports would be subject to the new tariffs.
Trump also reaffirmed plans to introduce “reciprocal tariffs” by Tuesday or Wednesday, aiming to impose duties on foreign goods when other nations levy tariffs on U.S. products. He cited trade imbalances, arguing that if other countries charge significantly higher tariffs on American goods while the U.S. imposes none, the situation would change under his administration.
This move marks a shift from Trump’s first term, during which he prioritized tax cuts and deregulation before implementing major tariffs. Now, tariffs appear to be a key part of his economic strategy, both as a tool for negotiating trade policies and as a means to generate revenue to address the federal budget deficit.
Financial markets reacted negatively to Trump’s tariff announcement on Friday. Stock prices fell, partly due to a decline in consumer sentiment, as surveys indicated that Americans were increasingly concerned about tariffs and potential inflationary effects. Respondents expected higher costs in the coming months as a result of the import duties.
While Trump did not provide further specifics on the steel and aluminum tariffs, he has previously proposed a 25% tariff on all Canadian and Mexican imports. However, he temporarily paused those tariffs for 30 days. Separately, he has already imposed a 10% duty on imports from China. On Friday, he also announced a delay in tariffs on millions of small packages, often from fast-fashion retailers such as Temu and Shein, until customs officials develop a system for enforcing them.
Trump’s tariff plans have raised concerns among global trade partners. In response, South Korea’s acting president, Choi Sang-mok, held a meeting with top trade and foreign policy officials to assess the potential economic impact. The stock prices of major South Korean steel producers, including POSCO and Hyundai Steel, dropped following the news. South Korea exported approximately $4.8 billion worth of steel to the U.S. from January to November last year, representing 14% of its global steel exports.
