• President Trump plans to impose a 25% tariff on all steel and aluminum imports.
• The announcement comes amid concerns over inflation and market fluctuations.
• Trump indicated the introduction of reciprocal tariffs to address international trade imbalances.

In a definitive move impacting international trade, President Donald Trump announced that the United States will impose a 25% tariff on all steel and aluminum imports, impacting shipments from countries including Canada and Mexico. This significant decision was revealed during Trump's flight aboard Air Force One as he stated, “Any steel coming into the United States is going to have a 25% tariff,” also confirming that “aluminum, too” would be subjected to similar duties. The announcement, made on the eve of a major trade initiative, is expected to take effect shortly, with Trump suggesting additional import duties may follow in the coming week to further address trade disparities.

During his statements, Trump also reiterated plans to announce “reciprocal tariffs,” likely to be detailed on Tuesday or Wednesday. This would allow the U.S. to impose duties on foreign products in response to similar measures enacted by other countries. Trump emphasized the need for fairness in trade, remarking, “If they are charging us 130% and we’re charging them nothing, it’s not going to stay that way.” This approach marks a return to his administration’s emphasis on trade protectionism seen earlier in his presidency.

The timing and scope of these tariffs appear to have immediate implications for financial markets, with shares of U.S. steel companies witnessing optimistically buoyant trading ahead of the announcement. Cleveland-Cliffs saw an impressive leap of 8%, with other major players such as U.S. Steel, Nucor, and Steel Dynamics also reporting noticeable increases. However, broader financial markets experienced downturns following Trump's initial reveal of the reciprocal tariffs, with analysts noting potential adverse effects on consumer sentiment and rising inflation concerns due to these trade policies.

Veteran market observers note that Trump's current actions represent a stark shift from his previous administration, which had primarily focused on tax cuts and deregulation rather than trade policies. Analysts are particularly wary of the international ramifications of these tariffs, as illustrated by the reaction from South Korea, where government officials convened to assess how the proposed steel and aluminum tariffs might impact their economy. In 2022, South Korea exported around $4.8 billion worth of steel to the U.S., a figure representing a significant percentage of their overall steel exports.

As Trump’s administration initiates these new tariffs, public sentiment appears split, with some viewing them as a necessary measure to address trade inequalities while others express concern over potential inflation and economic fallout. Observers and analysts continue to monitor developments as they unfold.

For further details, visit the full reports from SFGate, HuffPost, and LA Times.