American President Donald Trump announced on Sunday that the U.S. will implement an additional 25% tariff on all steel and aluminum imports, further fueling the trade tensions among countries. These proposed tariffs highlight President Trump’s assertive trade strategy as he begins his second term. Last week, he came close to imposing 25% tariffs on imports from Canada and Mexico but opted to grant a 30-day reprieve instead. However, a 10% tariff on Chinese imports has been enforced.
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Trump Teases Wave of New Trade Tariffs
En route to the NFL Super Bowl, President Trump told reporters he plans to unveil new metals tariffs on Monday. Additionally, he stated that reciprocal tariffs, matching the rates imposed by other countries, will be announced by midweek and take effect almost immediately.
Trump explained the reciprocal tariff plan, saying, “And very simply, it’s, if they charge us, we charge them.” He has consistently criticized the EU’s 10% tariff on car imports, which he believes is much higher than the U.S. rate of 2.5%. Meanwhile, the U.S. benefits from a 25% tariff on pickup trucks, which is a key profit source for automakers like General Motors (GM), Ford (F), and Stellantis (STLA).
More Setbacks for Canada and Mexico
The move adds to the pressure on Canada and Mexico. Official data shows Canada, Brazil, and Mexico are the top U.S. steel suppliers, followed by South Korea and Vietnam. Canada also dominates U.S. aluminum imports, accounting for 79% of total imports in 2024’s first 11 months, while Mexico supplies significant amounts of aluminum scrap and alloys.
It also follows Trump’s commitment to prevent Nippon Steel (JP:5401) from acquiring U.S. Steel (X), echoing Joe Biden’s decision to block the takeover. Following the news, X stock dropped roughly 6% on Friday.
Asian Stocks Under Fire
Once again, Trump’s proposed tariffs have shaken the global financial markets, which have been highly volatile in recent weeks. Trump’s remarks led to a decline in the stocks of prominent South Korean steel and automotive companies.
Similarly, shares of Indian steel stocks experienced a significant drop in Monday’s trading. Tata Steel (IN:TATASTEEL) was down by over 3% as of writing, while Steel Authority of India Limited (IN:SAIL) dropped nearly 5%.
Here are some major metal stocks in the U.S. for investors to research thoroughly.
