Trump announces plans to introduce a series of new trade tariffs. Three hours earlier. Michael Wendling. BBC News – @mwendling. Source: Reuters. President Donald Trump has announced that he will implement a 123% import tariff on all steel and aluminum entering the United States, a decision likely to affect Canada the most. He also mentioned plans to announce reciprocal tariffs later in the week targeting countries that impose import taxes on U.S. goods, but did not disclose which countries would be affected or if any would be exempt. “If they charge us, we charge them,” Trump stated. He shared these plans while on his way from his Mar-a-Lago resort in Florida to the Super Bowl in New Orleans on Sunday. Canada and Mexico are significant steel trading partners for the U.S., with Canada being the largest supplier of aluminum. During his first term, Trump had already imposed 25% tariffs on steel and 10% on aluminum from Canada, Mexico, and the European Union. However, the U.S. reached an agreement a year later with Canada and Mexico to lift those tariffs, though the EU’s import taxes remained until 2021. Speaking from Air Force One, Trump declared that he would impose tariffs on “everyone” for both steel and aluminum, stating, “Any steel coming into the United States is going to have a 25% tariff.” In response, Ontario Premier Doug Ford criticized Trump for “shifting goalposts and constant chaos, putting our economy at risk” in a social media post. Steel manufacturing in Canada is primarily located in Ontario. Additionally, remarks made by Trump led to a decline in the stock prices of prominent South Korean steel and automobile companies. South Korea is a significant supplier of steel to the United States. Shares of POSCO Holdings, a steel company, decreased by as much as 3.6%, and Hyundai Steel’s stock dropped by up to 2.9%. Additionally, Kia Corp’s shares fell by 3.6% in early trading hours. This action by Trump represents another significant intensification of his trade policy, which has already led to counteractions from China. Reuters. Tariffs play a key role in Trump’s economic strategy, as he views them as a means to boost the US economy, safeguard jobs, and increase tax income. Recently, he threatened to implement a 25% import tariff on products from Canada and Mexico but postponed this decision for 30 days, following discussions with the leaders of both nations. Additionally, he introduced a 10% tariff on all Chinese imports to the US, prompting China to respond with their own tariffs that went into effect on Monday. Trump indicated he would reveal further retaliatory tariffs on “Tuesday or Wednesday,” with these measures taking effect “almost immediately” afterward. He remarked, “We will impose reciprocal tariffs on those taking advantage of the United States.”
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