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U.S. President Donald Trump announced a 25% tariff on steel and aluminum imports, escalating trade tensions with Canada, Mexico, and the EU. If enacted in March, these duties could bring total tariffs on Canadian metals to 50%, a White House official confirmed.
Canada was reportedly unaware of the cumulative nature of the tariffs. Prime Minister Justin Trudeau called the move "unacceptable" and pledged a firm response. Mexico's Economy Minister Marcelo Ebrard labeled the decision "unfair" but did not confirm retaliatory measures.
The EU also condemned the tariffs, warning of "firm and proportionate countermeasures." European Commission President Ursula von der Leyen criticized the move, suggesting the bloc might reinstate its 2018 tariffs on U.S. goods like bourbon and motorcycles. The American Chamber of Commerce to the EU warned of job losses and supply chain disruptions.
The tariffs, effective March 12, eliminate previous exemptions for Canada, Brazil, Mexico, and South Korea. They are expected to impact millions of tons of metal imports. Trump's new "melted and poured" requirement aims to curb Chinese and Russian metal transshipment.
Businesses reliant on steel and aluminum, including Coca-Cola and Ford, anticipate higher costs and supply chain chaos. Ford CEO Jim Farley noted the tariffs have already caused "a lot of cost and a lot of chaos." The Coalition of American Metal Manufacturers and Users warned of lost business and stalled investments.
Canada supplied nearly 80% of U.S. primary aluminum in 2024, while steel imports made up 23% of U.S. consumption in 2023. Industry leaders fear retaliatory tariffs could further damage U.S. manufacturing and exports, exacerbating global trade tensions.
