President Donald Trump has announced his intention to impose a 25% import tax on all steel and aluminum entering the United States, a decision that is expected to significantly affect Canada.
Additionally, Trump indicated that there would be an announcement later in the week regarding reciprocal tariffs on all nations that impose taxes on imports from the United States, although he did not clarify which countries would be affected or if any exemptions would apply.
“If they impose charges on us, we will impose charges on them,” Trump stated.
He shared his plans with reporters while en route from his Mar-a-Lago resort in Florida to the Super Bowl in New Orleans on Sunday. Canada and Mexico rank among the largest steel trading partners of the United States, with Canada being the foremost supplier of aluminum to the U.S. market.
During his first term, Trump implemented tariffs of 25% on steel imports and 10% on aluminum imports from Canada, Mexico, and the European Union. However, a year later, the United States reached an agreement with Canada and Mexico to lift those tariffs, while the EU’s import taxes remained in effect until 2021.
Speaking from Air Force One, Trump stated on Monday that he would impose tariffs on “everyone” concerning steel and aluminum.
“Any steel entering the United States will incur a 25% tariff,” he declared.
In reaction, Doug Ford, the Premier of Ontario, criticized Trump for “shifting goalposts and creating constant chaos, jeopardizing our economy” in a social media post. Ontario is home to a significant portion of Canada’s steel production.
Trump’s remarks also led to declines in the stock prices of major South Korean steel and automotive manufacturers, as South Korea is a key exporter of steel to the United States.
Shares of POSCO Holdings fell by as much as 3.6%, while Hyundai Steel’s shares decreased by up to 2.9%. Similarly, Kia Corp’s stock dropped by 3.6% during early trading.
This action represents another significant escalation in Trump’s trade policy, which has already provoked retaliatory measures from China.
Tariffs play a pivotal role in Trump’s economic strategy, as he perceives them as a mechanism for stimulating the US economy, safeguarding employment, and increasing tax revenues.
Earlier this month, Trump issued a warning regarding the potential implementation of import duties amounting to 25% on products from Canada and Mexico; however, he subsequently postponed this initiative for 30 days—until early March—following discussions with the leaders of both nations.
Additionally, he introduced new US tariffs of 10% on all goods imported from China. In response, Beijing enacted its own series of tariffs, which came into effect on Monday.
Trump further indicated that he would reveal additional retaliatory tariffs on “Tuesday or Wednesday,” with these measures set to be implemented “almost immediately” after the announcement.
“We will impose reciprocal tariffs on those who exploit the United States,” he stated. “This will benefit everyone, including other nations.”
During his visit to New Orleans, Trump issued a proclamation declaring February 9 as “Gulf of America” Day, coinciding with his directive to rename the Gulf of Mexico, as his aircraft traversed the waterway.
Mexico contends that the United States lacks the legal authority to alter the name of the Gulf, citing United Nations regulations that stipulate a nation’s sovereign territory extends only 12 nautical miles from its coastline.
When questioned about any discussions with Russian President Vladimir Putin, Trump responded, “I prefer not to discuss it, and if we are in communication, I do not wish to disclose the details prematurely, but I believe we are making headway.”
“I anticipate that I will meet with Putin at the appropriate moment,” he added.
Trump reiterated his unconventional proposals regarding the potential annexation of Canada and the Gaza Strip, asserting that Canada would be better off as the “51st state” and expressing his “commitment to purchasing and owning Gaza.”