President Trump Imposes 25% Tariffs on Steel and Aluminium Imports

On 10 February 2025, U.S. President Donald Trump signed an executive order reinstating a 25% tariff on all steel and aluminium imports, aiming to bolster domestic production and address trade imbalances. The administration emphasized that these measures are designed to protect national security and revitalize American industries. The tariffs apply universally, without exemptions for any countries.

The executive order eliminates previous alternative agreements and duty-free exemptions, applying strict "melted and poured" standards to ensure that only metals fully processed in the U.S. are exempt. It also expands tariffs to include key downstream products and terminates all general approved exclusions, aiming to prevent tariff misclassification and duty evasion schemes.

In response to the announcement, U.S.-based steel and aluminium producers experienced significant gains in the stock market. Companies such as Nucor, Cleveland-Cliffs, Steel Dynamics, U.S. Steel, and Alcoa saw their shares rise in premarket trading, reflecting investor optimism about the potential benefits to domestic manufacturers.

The international community has expressed concern over potential retaliatory actions and the broader implications for global trade relations. Japan has formally requested exemption from the new tariffs, citing previous duty-free quotas and emphasizing the importance of their trade relationship with the U.S.

Industry leaders, particularly in the automotive sector, have warned that the tariffs are likely to drive up production costs, which may be passed on to consumers. Automakers such as Ford, General Motors, and Stellantis have expressed concerns over potential price increases and supply chain disruptions.

Image: Roy Luck/Wikimedia Commons

Licence.