In a major trade policy shift, President Donald Trump announced on Monday that the US will impose a 25% tariff on all steel and aluminium imports. This includes metals coming from traditional allies like Canada and Mexico. Trump confirmed this decision while aboard Air Force One, en route to the Super Bowl.
Trade tensions escalate
Trump made it clear: “Any steel coming into the United States is going to have a 25% tariff,” and he added, “Aluminium, too.” The announcement signals a tough stance on trade, further tightening the screws on US imports. This move is just one part of his broader effort to overhaul the nation’s trade policies.
Reciprocal tariffs coming soon
But that’s not all. Trump also revealed plans to impose reciprocal tariffs. These will mirror the tariff rates other countries charge the US. He stated, “If they charge us, we charge them.” Expect this new policy to kick in by mid-week, with tariffs taking effect almost immediately.
Steel stocks in Asia took a hit following Trump’s announcement. Shares in companies based in the US, however, were largely unaffected. The global market is feeling the tremors of Trump’s bold decision. Investors are on edge as they brace for further moves.
Australia seeks exemption
Across the globe, Australia is pushing for an exemption from the tariffs. Trade Minister Don Farrell argued that Australian steel and aluminium exports create American jobs and are vital for defense ties between the two countries. “We’re advocating for free and fair trade,” Farrell said, hoping for a more favorable outcome.
Canada and Mexico under pressure
Trump has long had a contentious relationship with Canada and Mexico, and these new tariffs threaten to intensify that. Although the president recently paused his 25% tariff threats against these countries, there’s still the looming possibility of new import taxes. Meanwhile, Trump has already slapped China with a 10% tariff on its imports, further escalating tensions with Beijing.
EU braces for impact
The European Union is watching the situation closely. German Chancellor Olaf Scholz warned that Europe is ready to retaliate swiftly if the US enacts tariffs. “We will respond within an hour,” Scholz said, a statement that highlights how quickly trade wars can spiral out of control.
China’s retaliation
In China, retaliatory tariffs on US goods are set to go into effect, starting Monday. Relations between Washington and Beijing show no signs of improving anytime soon. With no negotiations in sight, the trade war between the two largest economies in the world is heating up.
Trump signs “Gulf of America Day” proclamation
While the trade news dominates headlines, Trump also took time for a lighter moment. On Air Force One, he signed a proclamation declaring February 9, 2025, as the first-ever “Gulf of America Day.” The proclamation coincides with Trump’s earlier decision to rename the Gulf of Mexico, showcasing his signature flair for dramatic changes.
Canada: The 51st state?
In another interview, Trump floated the idea of making Canada the 51st state. “Canada would be much better off,” he argued, referring to the $200 billion trade deficit the US faces with its northern neighbor. If Canada were to become part of the US, Trump claims, the nation would save a significant amount of money.
Musk and the fight against bureaucracy
In a separate discussion, Trump expressed his continued support for tech mogul Elon Musk. The president praised Musk for his efforts to streamline government functions, specifically through the Department of Government Efficiency (DOGE). This initiative aims to reduce federal workers, eliminate unnecessary programs, and slash regulations, all in an effort to reduce bureaucracy and cut costs.
Trump’s latest actions signal a new phase in his aggressive trade policies. Whether these tariffs will result in long-term gains or spark a global trade war remains to be seen.
