Trump's Tariffs on Steel, Aluminum Imports Goes into Effect

US President Donald Trump's increased 25% tariffs on steel and aluminum imports into the United States took effect on Wednesday.

The White House said the tariffs will affect Canada and other countries, and indicated that Washington no longer plans to raise metal tariffs from Canada to 50%.

Reuters reported that Trump's move to strengthen protections for US steel and aluminum producers reimposes global 25% tariffs on all metal imports and expands the tariffs to hundreds of finished metal products, from nuts and bolts to bulldozer blades and soda cans.

Trump's relentless focus on tariffs since taking office in January 2025 has undermined investor, consumer, and business confidence in ways that economists fear could trigger a recession in the United States.

The European Commission, the EU's executive arm responsible for coordinating trade issues, quickly responded, saying it would impose retaliatory tariffs on €26 billion ($28 billion) worth of US goods starting next month.

"We are ready to engage in meaningful dialogue," European Commission President Ursula von der Leyen told reporters, adding that she had tasked Trade Commissioner Maros Sefcovic with resuming talks "to explore better solutions with the United States."

On its part, the Chinese Foreign Ministry said Beijing would take all necessary measures to protect its rights and interests, while Japan's Chief Cabinet Secretary Yoshimasa Hayashi said the move could have a significant impact on US-Japan economic relations.

Canada, the United Kingdom, and Australia criticized the comprehensive tariffs, with Canada considering reciprocal action. British Trade Minister Jonathan Reynolds said "all options are on the table" to respond in the national interest.

Australian Prime Minister Anthony Albanese said the move "goes against the spirit of the enduring friendship between our two countries" but ruled out imposing reciprocal tariffs.

The countries most affected by the tariffs are Canada, the largest foreign supplier of steel and aluminum to the United States, and Brazil, Mexico, and South Korea, all of which have enjoyed some level of exemptions or quotas.

Trump initially threatened Canada with doubling tariffs to 50% on its steel and aluminum exports to the United States, but backed down after the province of Ontario suspended a move to impose an additional 25% tariff on electricity exports to Minnesota, Michigan, and New York.

This decision sparked severe tension in US financial markets, which were already strained by Trump's broad tariff campaign.