Trump to announce 25% steel and aluminum tariffs in latest trade escalation; more import duties to come

In addition to other import taxes later in the week, President Donald Trump stated that he will declare on Monday, February 10, 2025, that the United States will apply 25% tariffs on all imports of steel and aluminum, including those from Canada and Mexico. As he flew from Florida to New Orleans on Sunday to attend the Super Bowl, he informed reporters on Air Force One that “any steel coming into the United States is going to have a 25% tariff.” “Aluminum, too,” he said in response to a question concerning aluminum, will be liable to the trade penalties. Additionally, Mr. Trump reiterated that he would declare “reciprocal tariffs”—”likely Tuesday or Wednesday”—which would mean that the United States would levy import taxes on goods in situations where another nation had imposed levies on the United States. “It won’t continue that way if they charge us 130% and we charge them nothing,” he told reporters.

The most recent instance of Mr. Trump’s willingness to threaten and, in certain situations, impose import duties is his remarks. Compared to his four years in the White House, when he focused tax cuts and deregulation, tariffs are being implemented considerably sooner in his presidency. Mr. Trump has variously stated that he views import tariffs as a source of income to assist reduce the government’s budget deficit as well as a tool to compel concessions on matters like immigration. Following Mr. Trump’s initial announcement that he would implement the reciprocal tariffs, financial markets experienced a decline on Friday. A gauge of consumer mood fell on Friday, and many respondents pointed to tariffs as an increasing concern, which caused stock prices to fall as well. According to the survey, Americans anticipate a slight increase in inflation in the upcoming months as a result of the duties.

Regarding the reciprocal tariffs and the steel and aluminum taxes, Mr. Trump provided no information on Sunday. Just a week ago, Mr. Trump postponed his earlier warning of 25% import duties on all goods from Canada and Mexico for 30 days. He then went ahead and increased import taxes from China by 10%. However, he announced on Friday that he would also postpone the duties on the millions of tiny packets, many of which come from fast-fashion companies like Temu. However, he stated on Friday that he would postpone the duties on the millions of little shipments, which are frequently from fast-fashion companies like Temu and Shein, until customs officers could find a means to apply them. Previously, the little packages were not subject to tariffs.