US Tariff Threats: Trump Raises Steel & Aluminum Tariffs to 25%

In a recent move that has caused shockwaves across the global market, President Donald Trump has announced a significant increase in tariffs on steel and aluminum imports. The new tariffs, which are set to be raised to 25%, have sparked fears of a trade war and have left many people questioning the long-term impact on the US economy, US import data, and its trading partners.Trump increases 10% aluminum tariffs to 25%

• Trump plans to impose tariffs on downstream steel goods.
• Additionally, Trump pledges more extensive retaliatory tariffs.

Trump's Steel and Aluminum Tariffs Rattle Global Trade

In an attempt to help faltering American industries, U.S. President Donald Trump significantly increased import duties on steel and aluminum on Monday to a flat 25% "without exceptions or exemptions." However, this decision runs the risk of starting a multifront trade war.

Trump signed proclamations that eliminated quota agreements, nation exceptions, and thousands of product-specific tariff exemptions for both metals, as well as increasing the US tariffs on aluminum imports from 10% to 25%. According to a White House official, the actions will go into effect on March 4. Millions of tons of steel and aluminum imports from Canada, Brazil, Mexico, South Korea, and other nations that were previously entering the United States duty-free under the carve-outs will be subject to the duties.

To reduce U.S. imports of less processed Chinese and Russian metals that get under previous tariffs, Trump will also implement a new North American standard that requires steel imports to have been "melted and poured" and aluminum imports to be "smelted and cast" inside the region.

The History of Tariffs in the US

To understand the current situation, it is important to look back at the history of tariffs in the United States. Tariffs have long been used as a tool to protect domestic industries and promote economic growth. However, they have also been the subject of heated debate, with critics arguing that they can lead to higher consumer prices and retaliation from other countries.

Tariffs may cause inflation to rise
Some economists predict increased inflation in 2025 as a result of Mr. Trump's intentions to use fresh tariffs to achieve his trade and other policy goals. Although it's unclear if Mr. Trump would implement all of the tariffs he's proposed—he recently granted Canada and Mexico a 30-day reprieve in his proposal to impose 25% import levies on those nations—the president is also indicating that he intends to proceed with additional tariffs.

Trump's Tariff Policies

Since taking office, President Trump has made no secret of his protectionist stance on trade. He has consistently lashed out at what he sees as unfair trade practices by other countries, particularly China. The decision to raise tariffs on steel and aluminum imports is just the latest salvo in Trump's ongoing trade war.

US Steel Import Data 2024

According to US steel import records and import data, US steel imports totaled $33.15 billion in 2023, a 26% decrease from the year before. The amount of steel imported by the US in 2023 was 25.6 million tons, which was 8.7% less than in 2022. The United States imported $25.39 billion worth of steel in the first three quarters of 2024, according to data on the subject.

US Steel Import Data by Country

According to US import data for 2024, Canada accounts for $8.36 billion of US steel imports, with Brazil and Mexico following closely behind. 77% of US steel imports in 2023–2024 came from the top 10 nations that supply steel to the US. The following are the top ten nations from which the US imported the most steel in 2024:

1. Canada: $8.36 billion (6.39 million metric tons)
2. Brazil: $4.56 billion (3.49 million metric tons)
3. Mexico: $3.73 billion (2.85 million metric tons)
4. South Korea: $2 billion (1.53 million metric tons)
5. Germany: $1.54 billion (1.18 million metric tons)
6. Japan: $1.23 billion (944 thousand metric tons)
7. Taiwan: $784.80 million (600 thousand metric tons)
8. Netherlands: $765.99 million (588 thousand metric tons)
9. Sweden: $733.94 million (564 thousand metric tons)
10. Italy: $710.66 million (546 thousand metric tons)

US Aluminum Import Data 2024

The United States imported $28.31 billion worth of aluminum in 2024, up 2.25% from the year before, according to US import data and aluminum import data from the USA. The United States is the world's top importer of aluminum, sourcing and importing it from several countries.

US Aluminum Imports Data by Country

According to US import shipment data and USA bill of lading data for 2024, the top 10 nations from which the US buys the most aluminum are:
1. Canada: $11.47 billion (40.68%)
2. China: $3.07 billion (10.85%)
3. Mexico: $1.84 billion (6.53%)
4. United Arab Emirates: $1.28 billion (4.50%)
5. South Korea: $981.84 million (3.45%)
6. India: $820.54 million (2.90%)
7. Bahrain: $726.23 million (2.55%)
8. Colombia: $668.71 million (2.35%)
9. Germany: $614.39 million (2.18%)
10. Thailand: $481.81 million (1.70%)

Impact of Steel and Aluminum Tariffs on the US Economy

The immediate impact of the tariff increase is likely to be felt by consumers and businesses across the country. Higher tariffs on steel and aluminum imports will lead to higher prices for a wide range of goods, from cars to canned goods. This could potentially hurt industries that rely heavily on these materials, such as the automotive and construction sectors.

Global Trade Relations
The repercussions of Trump's tariff increase are not limited to the United States. Many of America's trading partners, including the European Union, Canada, and Mexico, have already threatened to retaliate with their tariffs on US goods. This could escalate into a full-blown trade war, with serious consequences for the global economy.

Conclusion

In conclusion, President Trump's decision to raise tariffs on steel and aluminum imports to 25% has sent shockwaves through the global market. The long-term impact of this move remains to be seen, but one thing is clear: the future of international trade hangs in balance with this sudden trade strategy.