US President Donald Trump has announced that the United States will impose a 25% tariff on all steel and aluminium imports starting Monday. More metal duties are expected to be announced later in the week.

While travelling to the NFL Super Bowl in New Orleans aboard Air Force One on Sunday, US President Donald Trump told reporters that he plans to announce reciprocal tariffs as early as Tuesday, which would take effect almost immediately.

However, he did not specify which countries would be affected. Trump emphasized that the US would match the tariff rates imposed by other nations, applying the policy to all. "Very simply, if they charge us, we charge them," he said.

During his first White House term from 2016-2020, Trump imposed a 25 percent tariff on steel and 10 percent on aluminium but later granted several trading partners duty-free quotas, including Canada, Mexico, and Brazil. Former President Joe Biden extended these quotas to Britain, Japan, and the European Union, and US steel mill capacity utilization has dropped in recent years.

Impact on Canada and Mexico?

Canada, Brazil, and Mexico remain the top suppliers of US steel imports, followed by South Korea and Vietnam, according to official data. In aluminium, Canada leads by a wide margin, supplying 79% of total US imports in the first 11 months of 2024. Mexico also plays a crucial role, providing aluminium scrap and aluminium alloy.

Reciprocal tariffs ahead?

With Trump's plan to introduce reciprocal tariffs, the US could match the duties imposed by other nations. This move may put additional pressure on key trading partners like Canada and Mexico, potentially affecting trade dynamics and market stability.

Trump has repeatedly criticized the European Union for its 10% tariff on auto imports, which is significantly higher than the 2.5% rate the US imposes on foreign cars. He often claims that Europe "won't take our cars" while exporting millions of vehicles to the US each year.

However, the US maintains a 25% tariff on pickup trucks—a key profit driver for American automakers like General Motors, Ford, and Stellantis’ US operations.

How US Tariffs Compare

According to World Trade Organization data, the US has a trade-weighted average tariff rate of about 2.2%. In contrast, India’s rate stands at 12%, Brazil at 6.7%, Vietnam at 5.1%, and the European Union at 2.7%.