Bloomberg
WASHINGTON, D.C. – President Donald Trump on Monday reimposed a 25% tariff on all steel
and aluminum imports into the United States, eliminating exemptions and closing loopholes that
had allowed some importers to sidestep previous trade measures.
“This is a big deal — making America rich again,” Trump said in announcing the tariffs,
according to a pool report.
While the U.S. imports most of its steel from Canada, Brazil, and Mexico, the move is largely
aimed at China, whose steel still finds its way into the American market through indirect
channels. Some Chinese steel is purchased and reshipped by other nations, while some is
mislabeled and sold through various trade networks.
Steel and aluminum are crucial to industries ranging from infrastructure and transportation to
consumer goods. Tariffs could drive up production costs for cars, appliances, and construction
projects as domestic producers adjust prices in response to reduced competition from lower-cost
imports.
The Trump administration first imposed a 25% tariff on steel and 10% on aluminum in 2018,
leading to an initial drop in imports and a boost in domestic production. However, many
manufacturers still relied on cheaper foreign sources, and the trade measures triggered retaliatory
tariffs that raised costs for American consumers.
Despite the tariffs, U.S. steel imports fell by 27% between 2017 and 2019, while domestic
production rose by 7.5%, according to the American Iron and Steel Institute. But the gains
proved short-lived, as both imports and domestic output declined in 2020 due to the COVID-19
pandemic. Production has yet to return to pre-tariff or pre-pandemic levels.
A Trump administration official said the latest tariffs are intended to prevent importers from
circumventing trade restrictions by slightly modifying steel products abroad before shipping
them to the U.S.
Trump, speaking aboard Air Force One on Sunday, said he plans to introduce additional
reciprocal tariffs in the coming weeks. Last week, he imposed a 10% tariff on all Chinese
imports, prompting swift retaliation from Beijing on certain semiconductor chips and metals.
However, Trump has also signaled some flexibility, pausing tariffs on goods valued at $800 or
less until a tracking system is developed by the Commerce Department. Additionally, his
administration has suspended the 25% tariffs on imports from Mexico and Canada until at least
March 1st.
With trade tensions escalating, the impact of Trump’s renewed tariff strategy remains uncertain.
While the administration aims to strengthen domestic steel and aluminum production,
manufacturers and consumers could face rising costs in the months ahead.