Trump says he will announce raft of new trade tariffs
Former President Donald Trump has announced plans to impose a 25% import tax on all steel and aluminum entering the U.S., a decision expected to have the greatest impact on Canada.
He also mentioned that later in the week, he would unveil reciprocal tariffs on countries that impose import taxes on U.S. goods. However, he did not specify which nations would be affected or whether any exemptions would be granted.
“If they charge us, we charge them,” Trump stated.
Canada and Mexico are among the U.S.’s largest steel trading partners, with Canada being the primary supplier of aluminum to the country.
During his first term, Trump imposed tariffs of 25% on steel imports and 10% on aluminum imports from Canada, Mexico, and the European Union. A year later, the U.S. reached an agreement with Canada and Mexico to lift the tariffs, but the EU import taxes remained in place until 2021.
Speaking aboard Air Force One on Monday, Trump reaffirmed his stance, stating that tariffs would apply to “everybody” for steel and aluminum imports.
“Any steel coming into the United States is going to have a 25% tariff,” he said.
In response, Ontario Premier Doug Ford criticized Trump’s move in an online post, accusing him of “shifting goalposts and constant chaos, putting our economy at risk.” Ontario is home to much of Canada’s steel production.
Trump’s comments also led to a decline in the stocks of major South Korean steel and automobile manufacturers. South Korea is a significant exporter of steel to the U.S.
Shares of steel company POSCO Holdings dropped as much as 3.6%, while Hyundai Steel saw a decline of 2.9%. Meanwhile, Kia Corp’s stock also fell by 3.6% during early morning trading.
Trump’s move marks another major escalation in Trump’s trade policy, which has already sparked retaliation from China.
Tariffs are a central part of Trump’s economic vision – he sees them as a way of growing the US economy, protecting jobs, and raising tax revenue.
Earlier this month, Trump threatened to impose import duties of 25% on Canadian and Mexican products but later delayed that plan for 30 days – until early March – after speaking to the leaders of both countries.
He also brought in new US levies of 10% on all Chinese goods coming into the US. Beijing has retaliated with its own set of tariffs which took effect on Monday.
Trump also said he would announce more tit-for-tat tariffs on “Tuesday or Wednesday” and that they would take effect “almost immediately” after the announcement.
“The ones that are taking advantage of the United States, we’re going to have reciprocal [tariffs],” he said. “It’ll be great for everybody, including other countries”.
