Emmanuel OchayiPresident Donald Trump said on Sunday that the United States will impose 25% tariffs on steel and aluminium imports this week. Speaking to reporters aboard Air Force One, Trump confirmed that he will announce the tariffs on Monday, targeting “any steel coming into the United States.” The tariffs will also apply to aluminium.
This move is part of Trump’s broader trade policy, which has included similar tariffs in the past. During his first term from 2017 to 2021, he imposed tariffs to protect U.S. industries from what he considered unfair competition, mainly from Asia and Europe.
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The new tariffs are expected to impact several major trading partners. Canada, which is the largest supplier of steel and aluminum to the U.S., is likely to be affected. Other key exporters, including Brazil, Mexico, and South Korea, will also face the increased tariffs.
Trump has previously threatened Canada with trade penalties, and he reiterated his stance on Sunday. The move could further strain relations between the two countries, as Canada has been a key ally in various economic agreements.
Trump to Introduce Reciprocal Tariffs
Trump also revealed that he plans to introduce what he called “reciprocal tariffs.” These tariffs will be designed to match the rates imposed by other countries on U.S. goods.
“Every country will be reciprocal,” Trump stated. “We are going to make sure that our products face the same trade conditions abroad that their products face here.”
He said he would provide more details on Tuesday or Wednesday. The introduction of reciprocal tariffs aligns with Trump’s previous policies, where he used tariffs as leverage to renegotiate trade deals.
Tariffs on China and Retaliatory Measures
China is another major target of Trump’s trade policies. Earlier this month, he imposed 10% tariffs on Chinese goods entering the U.S. Since Tuesday, these additional levies have been in effect.
Beijing responded by imposing its own tariffs on U.S. goods, including coal and liquefied natural gas. China’s new tariffs, set to begin Monday, cover approximately $14 billion worth of U.S. goods. In contrast, Trump’s tariffs target $525 billion worth of Chinese exports.
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These measures are part of an ongoing trade battle between the world’s two largest economies. Many analysts believe the dispute could lead to increased costs for American businesses and consumers.
Europe and Japan Also in Trump’s Sights
Trump has also warned of tariffs on the European Union. He said he would soon announce unspecified “reciprocal tariffs” against the EU.
French President Emmanuel Macron addressed the issue in an interview on Sunday. He said Europe should stand firm against Trump’s financial threats. Macron argued that the U.S. should focus on trade disputes with China rather than targeting Europe.
He also warned of the economic impact of tariffs on European goods. “These tariffs will increase costs and create inflation in the U.S.,” Macron stated.
Japan is another country that could be affected. On Friday, Trump met with Japanese Prime Minister Shigeru Ishiba. While the meeting was largely positive, Trump warned that Japan could still face trade penalties. He stressed that he wants the U.S. trade deficit with Japan to be eliminated.
Impact on the U.S. Economy
The United States recorded a trade deficit of nearly $920 billion last year. Trump has repeatedly said that reducing this deficit is one of his main economic goals.
He has promised a “new golden age” for America, insisting that tariffs will not hurt American consumers. However, many experts disagree, warning that businesses may pass on higher costs to consumers.
Macron’s warning about inflation echoes concerns from economists who argue that tariffs often lead to price increases. Despite this, Trump has remained firm in his belief that foreign exporters will bear the cost.
Even though Trump admitted earlier this month that Americans might feel some economic “pain” from tariffs, he believes the long-term benefits will outweigh the short-term effects.
Trump’s Use of Tariffs as Leverage
Trump has frequently used tariffs as a negotiating tool. One recent example is his stance on Colombia. When the South American country refused to allow U.S. military planes carrying deported migrants to land, Trump threatened to impose trade penalties.
After a tense standoff, the Colombian government backed down. This incident shows how Trump has used economic pressure to achieve broader policy objectives.
With new tariffs on steel, aluminum, and potential reciprocal tariffs on more countries, Trump continues to reshape U.S. trade policy. The global response to these measures remains uncertain, but many expect retaliatory actions from key U.S. trading partners.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
