Former U.S. President Donald Trump has imposed a 25% import tax on all steel and aluminum entering the United States, significantly expanding existing trade restrictions.
The tariffs, set to take effect on March 4, will raise the cost of metal imports despite warnings from Canada—America’s largest supplier—as well as other nations. While U.S. businesses reliant on these imports have expressed concerns, Trump insists the move will revitalize domestic production.
Declaring there would be no exceptions, Trump said the new rules simplify trade regulations. “This is a big deal—the start of making America rich again,” he stated, emphasizing the need for steel and aluminum to be produced domestically rather than sourced from abroad. When asked about potential price hikes for consumers, he claimed that “ultimately, it will be cheaper.”
The United States is the world’s largest importer of steel, with Canada, Brazil, and Mexico as its top suppliers. Canada alone accounted for over half of U.S. aluminum imports last year, making it the country most affected by the tariffs. Canadian officials swiftly condemned the move, with Innovation Minister François-Philippe Champagne calling it “totally unjustified.”
Ontario Premier Doug Ford accused Trump of “shifting goalposts and creating chaos,” warning of economic risks. Canada’s steel industry lobby urged immediate retaliation, while MP Kody Blois suggested exploring ways to lessen reliance on U.S. trade.
Despite concerns, major U.S. steel manufacturers saw stock prices surge in anticipation of the tariffs, with Cleveland-Cliffs shares jumping nearly 20%. However, broader market reaction remained subdued, as skepticism lingered over whether Trump would follow through without offering exemptions—something he had done in 2018 when he imposed similar tariffs but later negotiated carve-outs for multiple countries.
Some experts view the move as a bargaining tactic rather than a strict trade policy. Dartmouth economist Douglas Irwin described it as a “replay of 2018,” questioning whether Trump aims to negotiate or simply bolster the U.S. steel industry.
Last week, Trump briefly ordered 25% duties on all Canadian and Mexican imports before delaying implementation by 30 days. He also imposed a 10% tariff on Chinese goods, prompting immediate retaliation from Beijing.
Trump has framed tariffs as a pillar of his economic agenda, arguing they protect American jobs and boost revenue. However, industry groups warn of rising costs for manufacturers reliant on steel and aluminum. During his first term, similar tariffs raised domestic metal prices by 2.4% and 1.6%, according to the U.S. International Trade Commission.
Stephen Moore, a former Trump campaign economic adviser, expressed skepticism about tariffs as a job-creation tool. He believes Trump’s approach is more about drawing global attention than enforcing strict trade policies, calling it a “negotiating tactic.”
Trump officials say the new measures aim to curb tariff evasion by countries like China and Russia, which allegedly route cheap products through intermediary nations. The administration is also implementing stricter regulations requiring steel to be “melted and poured” and aluminum to be “smelted and cast” in North America.
Nick Iacovella, spokesperson for the pro-tariff Coalition for a Prosperous America, voiced concern over rising steel imports from Mexico beyond agreed 2019 levels. He also pointed to what he sees as trade imbalances with Canada, a long-standing issue for Trump.
“There are still imbalances in U.S.-Canada trade that need addressing,” Iacovella said. “The president is signaling that Canada and Mexico are taking advantage of the U.S., and action will be taken.”
