US news: Donald Trump to announce 25% steel and aluminium tariffs in trade escalation

US President Donald Trump on Sunday announced plans to impose new 25% tariffs on all steel and aluminium imports into the US, in addition to the existing metal duties, marking a significant escalation in his trade policy.

Speaking to reporters on Air Force One en route to the NFL Super Bowl in New Orleans, Trump revealed that he would announce the new tariffs on Monday, as reported by Reuters.

He also said he will announce reciprocal tariffs on Tuesday or Wednesday, to take effect almost immediately, applying them to all countries and matching the tariff rates levied by each country.

“And very simply, it's, if they charge us, we charge them,” Trump said of the reciprocal tariff plan, Reuters reported.

The largest sources of US steel imports are Canada, Brazil and Mexico, followed by South Korea and Vietnam, according to government and American Iron and Steel Institute data, Reuters reported.

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Canada, with its abundant hydropower resources, is by far the largest supplier of primary aluminum metal to the U.S., making up 79% of total imports in the first 11 months of 2024.

“Canadian steel and aluminum support key industries in the U.S. from defence, shipbuilding and auto,” Canadian Innovation Minister Francois-Philippe Champagne posted on X.

“We will continue to stand up for Canada, our workers, and our industries.”

Trump also said that while the U.S. government would allow Japan's Nippon Steel to invest in U.S. Steel, it would not allow this to become a majority stake.

“Tariffs are going to make it very successful again, and I think it has good management,” Trump said of U.S. Steel.

Trump during his first term imposed tariffs of 25% on steel and 10% on aluminum, but later granted several trading partners duty-free exemptions, including Canada, Mexico and Brazil. Mexico is a major supplier of aluminum scrap and aluminum alloy, Reuters reported.

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Former President Joe Biden later negotiated duty-free quota arrangements with Britain, the European Union and Japan. It was not immediately clear from Trump's announcement what will happen to those exemptions and quota arrangements.

The U.S., however, enjoys a 25% tariff on pickup trucks, a vital source of profits for Detroit automakers General Motors, Ford and Stellantis' U.S. operations.

The U.S. trade-weighted average tariff rate is about 2.2%, according to World Trade Organization data, compared to 12% for India, 6.7% for Brazil, 5.1% for Vietnam and 2.7% for European Union countries.

(With inputs from Reuters)