Trump Imposes 25 Percent Tariffs on Steel and Aluminum
Aerial view of steel producer SSAB's location in Luleå, Northern Sweden. (Photo: Patrik Ohman).
US President Donald Trump is imposing 25 percent tariffs on all steel and aluminum imports. The European Commission said it would react to protect European businesses from unjustified measures.
This article has been updated.
US President Donald Trump is imposing 25 percent tariffs on all steel and aluminum imports into the US.
Trump signed the executive action on Monday and is imposing a 25 percent flat tariff with "no exceptions." The aim is to encourage investment and expansion of domestic steel production.
"It's a big deal. This is the beginning of making America rich again," Trump said while signing the actions.
The top three sources of US imports of steel are Canada, Mexico, and Brazil, according to the International Trade Administration of the US Department of Commerce. Canada is also the largest supplier of primary aluminum to the US.
Will not go unanswered
"I deeply regret the US decision to impose tariffs on European steel and aluminum exports. Tariffs are taxes - bad for business, worse for consumers," said President of the European Commission Ursula von der Leyen in a statement on the announced tariffs.
She further noted that unjustified tariffs on the EU will not go unanswered and that they will trigger firm and proportionate countermeasures.
"The EU will act to safeguard its economic interests. We will protect our workers, businesses and consumers," she added.
"By imposing tariffs, the US would be taxing its own citizens, raising costs for business, and fuelling inflation. Moreover, tariffs heighten economic uncertainty and disrupt the efficiency and integration of global markets," a statement from the European Commission on Monday read.
Monitoring developments
SSAB, a major steel producer in the Northern Swedish city of Luleå, said the company continues to monitor developments regarding tariffs.
"We have significant production in the USA as well as in the Nordics and feel secure in our conditions to continue serving our customers globally. For us and our customers, predictable trade rules are important and we hope that the partners can come to an agreement," press officer Anna Molin told HNN in an e-mail.
SSAB
SSAB is a Nordic and US-based steel company, with production plants in Sweden, Finland and the US.
"SSAB is well positioned on its home markets, the Nordics and North America, with production close to customers," the company writes.
Impacting downstream producers
Trump's tariffs on steel and aluminum marks the latest step in the US President's trade policy overhaul.
The US president has previously announced a 25 percent tariff on imports from Canada and Mexico but agreed to pause the tariffs for 30 days after reaching an agreement with the two neighboring countries.
The US has imposed ten percent duties on imports from China, which has responded with retaliatory tariffs on a selection of US imports.
In 2018, during Trump's first term, the US also announced Section 232 tariffs for steel and aluminum products from Canada and Mexico. In 2019, the US agreed to remove those tariffs, for the removal of retaliatory tariffs on US goods. Tariffs were also placed on steel and aluminum imports from the European Union, which were lifted in 2021.
According to AP, Trump’s original metals tariffs gave America’s struggling steel and aluminum producers some relief from intense global competition, while also taking a toll and a.o. increasing costs for downstream US producers that buy steel and aluminum and use them to manufacture goods.
