Trump raises tariffs on aluminum, steel, sparking widespread outrage

U.S. President Donald Trump on Monday signed an executive order to raise tariffs on steel and aluminum imports to 25 percent, sparking widespread outrage and prompting retaliatory measures from major trading partners, including the European Union, Canada and Mexico.

The new tariffs will take effect on March 4 and will carry out "without exceptions or exemptions."

"That's all countries, no matter where it comes from, all countries," Trump told reporters. He later said he would give "great consideration" to Australia's request for an exemption to the steel tariffs due to that country's trade deficit with the U.S.

Trump will also impose a new North American standard requiring steel imports to be "melted and poured" and aluminum to be "smelted and cast" within the region to curb U.S. imports of minimally processed metals from other countries that circumvent other tariffs.

The action also extends the tariffs to downstream products that use foreign-made steel, including fabricated structural steel, aluminum extrusions and steel strand for pre-stressed concrete, a White House official said.

Signing the order at the White House, Trump said he would follow Monday's action with announcements about reciprocal tariffs on all countries that impose duties on U.S. goods over the next two days. He added he was also looking at tariffs on cars, semiconductor chips and pharmaceuticals.

Trump in 2018, during his previous administration, also announced 25 percent tariffs on steel and 10 percent tariffs on aluminum imports from Canada, Mexico and the EU, which triggered swift retaliations. At the time, Brussels imposed countermeasures on U.S. goods, such as whiskey, motorcycles and orange juice.

In the following year, Trump lifted them on Canada and Mexico, although the EU import taxes remained in place until 2021. Those tariffs increased costs for car firms in the U.S. as well as makers of fizzy drinks who use aluminium in their cans. These were then passed on to consumers, according a report from thinktank Tax Foundation.

Signals of retaliations

The latest tariffs raise concerns about a multi-front trade war, with several countries signaling their readiness to retaliate.

The European Commission, the EU's executive body, on Monday swiftly condemned the U.S. tariffs after Trump threatened to impose the tariffs. The commission said there is "no justification" for the U.S. measures, calling them unlawful and economically harmful, particularly given the deep integration of EU-U.S. supply chains.

"Tariffs are essentially taxes," the commission said in a statement, warning that the move would increase costs for American businesses, drive inflation, heighten economic uncertainty and disrupt global market integration. The EU cautioned that these measures would ultimately act as a tax on U.S. consumers.

French Foreign Minister Jean-Noel Barrot warned that the EU will not hesitate to defend its interests, echoing its swift retaliatory actions in 2018. Meanwhile, Germany, Europe's largest economy, is preparing countermeasures. A spokesperson for the German Federal Ministry for Economic Affairs and Climate Action said that while the EU and Germany are working to prevent the tariffs, they stand ready to implement countermeasures if needed.

The UK, the U.S.'s second-largest export market after the EU, also criticized the move. Gareth Stace, director general of trade body UK Steel, called the tariffs "a devastating blow" to the industry. "At a time of shrinking demand and high costs, rising protectionism, particularly from the U.S., will stifle our exports and damage over 400 million pounds worth of the steel sector's contribution to the UK's balance of trade," he said.

Steel imports accounted for about 23 percent of American steel consumption in 2023, according to American Iron and Steel Institute data, with Canada, Brazil and Mexico being the largest suppliers.

Canada, whose abundant hydropower resources aid its metal production, accounted for nearly 80 percent of U.S. primary aluminum imports in 2024. Canada's industry minister said the U.S. tariffs were "totally unjustified," with Canadian steel and aluminum supporting key U.S. industries including defense, shipbuilding, energy and autos. Francois-Philippe Champagne said in a statement that Canada is examining the details. "Our response will be clear and calibrated."

Mexico's President Claudia Sheinbaum adopted a more cautious approach, saying she would wait for further details before taking action. "We will always defend the dignity of our people, respect for our sovereignty and a dialogue as equals without subordination," she said.

Trump had previously threatened to impose 25 percent tariffs on all imports from Canada and Mexico, citing border security concerns. However, after both countries made concessions on border enforcement, he paused the tariffs until March 1.

In South Korea, the Industry Ministry called in steelmakers to discuss how to minimize the impact of tariffs.

(With input from agencies)