On Monday, President Donald Trump imposed a 25% tariff on all steel and aluminum imports to the United States, with no exceptions or exemptions. Although the United States imports the majority of its steel from Canada, Brazil, and Mexico, the tariffs are primarily aimed at China, albeit indirectly.
America imports little steel directly from China, the world’s largest producer. Steel tariffs of 25% imposed during Trump’s first administration and continued by former President Joe Biden caused American importers to shift to other sources.
“This is a big deal — making America rich again,” Trump said when announcing the tariffs, according to a pool report.
Tariffs could raise the cost of production for many if not all, of those items due to higher import and domestic steel costs, and aluminum manufacturers could raise their prices due to reduced competition from low-cost imports.
“This is making North America more competitive and secure,” Francois-Philippe Champagne said. “We are consulting with our international partners as we examine the details. Our response will be clear and calibrated.”
The effects of these tariffs are unclear, but they may result in higher prices and reactions from other countries. Businesses and consumers will be watching to see how this decision will impact the economy.
