Trump to Impose 25% Tariffs On Steel, Aluminum For U.S. Allies

Donald Trump is set to impose 25% tariffs on steel and aluminum, a move expected to raise costs for U.S. industries that sourced 79% of their aluminum imports from Canada in the first 11 months of 2024, Jeff Mason and David Lawder reported for The Associated Press (AP).

European steelmakers account for about 15% of U.S. steel imports, while the largest sources of U.S. steel imports are Brazil, Canada, and Mexico, followed by South Korea and Vietnam.

"Canadian steel and aluminum support key industries in the U.S., including defense, shipbuilding, and auto manufacturing," Canadian Innovation Minister François-Philippe Champagne posted on X (formerly Twitter).

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

Meanwhile, Australia has been advocating for exemptions on aluminum and steel tariffs for months. "Australian steel and aluminum create thousands of good-paying American jobs and are critical to our shared defense interests," Trade Minister Don Farrell stated.

During his first presidential term (2017–2021), Trump imposed 25% tariffs on steel and 10% tariffs on aluminum, Kevin Liffey and Lidia Kelly also reported for AP.

Trump’s latest move is expected to damage the U.S. economy by increasing the cost of raw materials. In South Korea, the Industry Ministry convened a meeting with steelmakers to discuss mitigation strategies.

Following the tariff news, Hyundai Steel shares fell by as much as 2.9%, reflecting a broader decline in South Korean steel stocks.

European steelmakers account for about 15% of U.S. steel imports, while the largest sources of U.S. steel imports are Brazil, Canada, and Mexico, followed by South Korea and Vietnam, according to government data and the American Iron and Steel Institute, David Ljunggren and Costas Pitas also reported for AP.