President Donald Trump signed an order Monday increasing tariffs on steel and aluminum imports to 25%, eliminating previous exemptions and quota agreements. The move is intended to support struggling U.S. manufacturers but risks escalating global trade tensions.
A White House official confirmed that the new tariffs, which take effect March 4, will apply to millions of tons of imported metals from Canada, Brazil, Mexico, South Korea, and other nations that previously benefited from carve-outs.
“It’s 25% without exceptions or exemptions,” Trump told reporters. “That’s all countries, no matter where it comes from.”
The action extends Trump’s 2018 Section 232 tariffs, originally imposed on national security grounds. The administration argues that past exemptions weakened the tariffs’ effectiveness in protecting domestic industries.
In addition to removing country-specific exemptions, the policy introduces a North American standard requiring steel to be “melted and poured” and aluminum to be “smelted and cast” within the region. Officials say this measure is aimed at curbing imports of partially processed Chinese and Russian metals that circumvent existing trade restrictions.
The new tariffs will also affect downstream products that use foreign-made steel, including fabricated structural steel, aluminum extrusions, and steel strands used in construction.
“This will put an end to foreign dumping, boost domestic production, and secure our steel and aluminum industries,” White House trade adviser Peter Navarro said.
Canada, the largest supplier of U.S. aluminum imports, denounced the tariffs as “totally unjustified.” Industry Minister François-Philippe Champagne said Canadian steel and aluminum are crucial to key U.S. sectors, including defense, shipbuilding, energy, and automobiles.
“We are consulting with our international partners,” Champagne said. “Our response will be clear and calibrated.”
Although China exports minimal steel directly to the U.S., American officials blame Chinese overproduction for global supply chain disruptions. The U.S. argues that subsidized Chinese steel increases supply worldwide, forcing other nations to export more to the U.S.
In response to the tariff announcement, Chinese steel stocks fell, while U.S. steel and aluminum companies saw gains.
Trump first imposed steel and aluminum tariffs in 2018 under a Cold War-era national security law. He later granted exemptions for Canada, Mexico, and Australia and established quota-based agreements with Brazil, South Korea, and Argentina.
His successor, former President Joe Biden, renegotiated duty-free quotas for Britain, Japan, and the European Union.
“We applaud the president for instituting these 25% tariffs,” said Philip Bell, president of the Steel Manufacturers Association. “This eliminates outdated exclusions, carve-outs, and quotas that no longer reflect today’s market.”
The European Commission rejected the move, with officials stating there was “no justification” for the tariffs. President Ursula von der Leyen is scheduled to discuss trade concerns with U.S. Vice President JD Vance at an AI summit in Paris.
Trump said he would follow Monday’s announcement with additional reciprocal tariffs on all countries that impose duties on U.S. goods. He also indicated he is considering tariffs on automobiles, semiconductors, and pharmaceuticals.
Trump has long criticized the EU’s 10% tariff on cars, which is higher than the U.S. rate of 2.5%. However, the U.S. maintains a 25% tariff on imported pickup trucks, a major profit driver for domestic automakers.
Meanwhile, Indian Prime Minister Narendra Modi is preparing tariff cuts ahead of a Wednesday meeting with Trump. The administration hopes the changes will boost U.S. exports to India.
Trump has previously called India a “very big abuser” of trade policies, and economic adviser Kevin Hassett has criticized India’s high tariff rates.
The president also warned that Canada and Mexico could face additional 25% tariffs if they do not take stronger measures to curb drug trafficking and illegal migration. These tariffs were temporarily paused after border security concessions but remain under review.
U.S. aluminum smelters produced only 670,000 metric tons of aluminum last year, down from 3.7 million tons in 2000, highlighting the country’s reliance on imports.
Steel imports made up 23% of American steel consumption in 2023, with Canada, Brazil, and Mexico supplying the largest volumes.
As the global trade landscape shifts, industries and policymakers are watching closely to see how international partners respond to Trump’s latest tariff escalation.
