US President Donald Trump said on Sunday that he will announce on Monday new 25% tariffs on all steel and aluminum imports into the US, which would come on top of existing metals duties in another major escalation of his trade policy overhaul.

Trump, speaking to reporters on Air Force One, on his way to the NFL Super Bowl in New Orleans, also said he will announce reciprocal tariffs on Tuesday or Wednesday, to take effect almost immediately.

He said the US would match tariff rates levied by other countries and that this would apply to all countries.

"And very simply, it's, if they charge us, we charge them," Trump said of the reciprocal tariff plan.

Trump during his first term imposed tariffs of 25% on steel and 10% on aluminum, 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.

According to government and American Iron and Steel Institute data, the largest sources of U.S. steel imports are Canada, Brazil and Mexico, followed by South Korea and Vietnam.

By a large margin, Canada is the largest supplier of primary aluminum metal to the United States, accounting for 79% of total imports in the first 11 months of 2024. Mexico is a major supplier of aluminum scrap and aluminum alloy.

Matching rates
Trump said he would hold a news conference on Tuesday or Wednesday to provide detailed information on the reciprocal tariff plan, adding that hefirst revealed on Friday that he was planning reciprocal tariffs to ensure "that we're treated evenly with other countries."

The new US president has long complained about the EU's 10% tariffs on auto imports being much higher than the US car rate of 2.5%. He frequently states that Europe "won't take our cars" but ships millions west across the Atlantic every year.

The US, however, enjoys a 25% tariff on pickup trucks, a vital source of profits for Detroit automakers General Motors GM.N, Ford F.N and Stellantis' US operations.

The US trade-weighted average tariff rate is about 2.2%, according to World Trade Organization data, compared to 12% for India, 6.7% for Brazil, 5.1% for Vietnam and 2.7% for European Union countries.

Source: The Edge Malaysia
 

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