Trump Plans 25% Tariff on Steel and Aluminum

February 10, 2025 TruthUSA

The United States counts Canada and Mexico among its largest trading partners in aluminum and steel.

On February 10, President Donald Trump is anticipated to enact 25 percent tariffs on all imports of steel and aluminum.

While aboard Air Force One, en route from Florida to New Orleans to watch the Super Bowl, Trump informed reporters that he would impose a 25 percent levy on “any steel entering the United States,” remarking, “aluminum, too.”

Additionally, the president mentioned that he would soon reveal plans for “reciprocal tariffs,” whereby the U.S. would impose import duties on goods and services from countries that place tariffs on American products.

“If they are charging us 130 percent and we’re charging them nothing, it’s not going to stay that way,” Trump remarked. “If they charge us, we charge them.”

The United States considers Canada and Mexico to be significant trading partners in aluminum and steel. Although the president asserted that America’s trade deficit with Canada stood at $200 billion, the actual figure was $63.33 billion last year.

According to a March 2023 study from the U.S. International Trade Commission, the Trump administration’s implementation of Section 232 tariffs, deemed essential for national security, resulted in increased steel and aluminum prices. Yet, the effect on economic growth and job creation was minimal.

According to Alex Durante, a senior economist at the Tax Foundation, repealing Section 232 tariffs could result in the creation of over 4,000 jobs and a long-term GDP growth of 0.02 percent, equating to $3.5 billion.

“As tariffs act as taxes on imports and elevate production costs, we believe that reversing the Section 232 tariffs would bolster the U.S. economy and generate employment,” Durante stated in a paper released last spring.

Canada Reacts

In a separate pre-recorded interview with Fox News broadcast on Sunday, Trump expressed that he had not observed sufficient action from Canada and Mexico to avert tariffs after agreeing to a 30-day pause.

“No, it’s not good enough,” Trump responded to host Bret Baier. “Something must happen. This is unsustainable. And I will change it.”

Last week, the president consented to a 30-day extension on his proposal to levy a 25 percent charge on all goods imported from Canada and Mexico, with Canadian oil, natural gas, and electricity imports facing a reduced rate of 10 percent.

Canadian officials, including François-Philippe Champagne, the minister of innovation, science, and industry, promised to “defend Canada,” its workforce, and its industries.

Ontario Premier Doug Ford publicly admonished Trump on X, stating that he is “shifting goalposts” and generating “constant chaos.”

François Legault, the leader of Quebec, a key aluminum supplier, remarked on X that it is vital to “renegotiate” Canada’s free trade agreement with the United States “as quickly as possible.”

“Quebec exports 2.9 million tons of aluminum to them, representing 60 percent of their requirements. Do they prefer sourcing from China instead?” he wrote.

“We need to eliminate this uncertainty.”

Market Response

While Trump’s initial threat of imposing 25 percent tariffs on his North American trading partners led to significant volatility in the financial markets, U.S. stocks opened positively at the start of the trading week.

Major benchmark indexes rose by up to 0.7 percent ahead of the trading day.

Tom Essaye, founder and president of the Sevens Research Report, is optimistic that the U.S. stock market can sustain its upward trajectory despite the challenges posed by tariff threats.

“Can stocks continue to rally amidst ongoing tariffs and headline news?” Essaye queried in a note distributed to The Epoch Times. “I believe the answer is ‘yes,’ but this will necessitate a stream of predominantly positive news from the other bullish elements in the market.”

The bullish elements include the Federal Reserve’s ongoing interest rate cuts, steady economic growth, enthusiasm around artificial intelligence, and hopes for the continuation of the Tax Cuts and Jobs Act.

“If these positive headlines continue consistently, markets can navigate through tariff-related news and volatility to maintain their upward movement,” Essaye stated.

Wall Street is set for a busy week ahead as investors keep a close watch on Federal Reserve Chair Jerome Powell’s two-day testimony on Capitol Hill and evaluate two crucial inflation reports.

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