President Donald Trump has ordered a 25% import tax on all steel and aluminium entering the US in a major expansion of existing trade barriers. The tariffs, which will increase the costs of importing the metals into the US, come despite warnings of retaliation from some political leaders in Canada – America’s biggest supplier of the metals – as well as other countries. US businesses dependent on the imports have also raised concerns, but Trump has said his plans will boost domestic production.
US is the world’s largest importer of steel, counting Canada, Brazil and Mexico as its top three suppliers. Canada alone accounted for more than 50% of aluminium imported into the US last year. If the tariffs come into force, they are expected to have the most significant impact on Canada.
The lobby group for Canadian steel makers called on the Canadian government to retaliate against the US “immediately”, while Kody Blois, a leading MP from Canada’s governing Liberal Party, said his country was looking for ways to reduce its trade relationship with the US.
Meanwhile, share prices of the major US steel-makers rose on Monday in anticipation of the order, with the price of Cleveland-Cliffs jumping nearly 20%. Prices for steel and aluminium also jumped.
Last week, the Trump ordered import duties of 25% on all Canadian and Mexican products, only to delay that plan for 30 days. He also brought in new US levies of 10% on all Chinese goods coming into the US, prompting retaliation from China.
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