Trump to Impose 25% Tariffs on Steel, Aluminum Imports; Announces Reciprocal Duties

U.S. President Donald Trump announced plans to impose a 25% tariff on all steel and aluminum imports, set to take effect immediately. Speaking aboard Air Force One en route to the Super Bowl in New Orleans, Trump stated that he would unveil the tariffs on Monday, followed by reciprocal duties against countries with what he considers unfair trade practices on Tuesday or Wednesday.

The president also signed an executive order designating February 9 as “Gulf of America Day,” following his recent renaming of the Gulf of Mexico.

Trump’s move comes just days after implementing a 10% tariff on Chinese imports, prompting Beijing to retaliate. He had previously threatened similar duties against Canada and Mexico over border control issues but delayed them after receiving assurances from both nations.

The U.S. imports significant amounts of steel from Canada, Brazil, Mexico, South Korea, and Vietnam, with Canada being the largest aluminum supplier. While Trump had imposed 25% steel and 10% aluminum tariffs in his first term, he later granted duty-free quotas to allies like Canada, Mexico, and Brazil.

Reciprocal tariffs are part of Trump’s broader strategy to combat trade imbalances, particularly targeting the European Union’s 10% import duty on U.S. autos compared to the 2.5% rate imposed by the U.S.

Analysts and Federal Reserve officials warn that the tariffs could drive inflation higher as U.S. importers bear the costs. Following Trump’s announcement, U.S. stock futures edged lower.

Trump plans to hold a conference later this week to outline further details on his trade policies.