• President Trump has announced new 25% tariffs on all steel and aluminum imports, reinstating previous punitive measures against major suppliers.
• The tariffs may drive up costs for consumers, impacting sectors reliant on these metals, such as construction and automotive.
• Canadian Prime Minister Justin Trudeau criticized the tariffs as “unjustified,” indicating possible retaliation from Canada if necessary.

President Donald Trump has escalated his trade policy by imposing a new blanket tariff of 25% on all steel and aluminum imports into the United States. This move comes as part of his ongoing efforts to bolster domestic manufacturing and mitigate competition from foreign markets. On Air Force One, Trump emphasized, “Any steel coming into the United States is going to have a 25% tariff,” indicating that the levy would affect imports from all countries, including Canada, Mexico, and Brazil, which are traditionally significant suppliers.

Trump's latest tariffs are seen as a continuation of his trade agenda that dates back to his first term when he implemented similar measures, prompting reactions from affected industries and allied nations. The tariffs could significantly raise costs for American manufacturers who rely on imported metals for producing goods, leading to a potential increase in consumer prices across various sectors such as construction, automotive, and appliances. Estimates indicate that the tariffs might further fuel inflation in the U.S. economy.

In anticipation of these new tariffs, stocks of U.S.-based steel producers soared, with firms like Nucor and Cleveland-Cliffs reporting sharp rises in their share prices. However, downstream businesses—those utilizing steel and aluminum for their products—express concerns over rising input costs. Timothy Zimmerman, CEO of a manufacturing firm, recalled challenges from previous tariffs that saw prices soar, severely impacting profit margins and market competitiveness.

Internationally, the announcement has provoked outrage and concern. Canadian Prime Minister Justin Trudeau labeled the tariffs “entirely unjustified,” pointing out that Canada’s steel and aluminum are crucial for multiple American industries, adding, “Together, we make North America more competitive.” Trudeau pledged to collaborate with the Biden administration to demonstrate the adverse effects of the tariffs on U.S.-Canadian economic relations. He warned that a firm response would be ready if necessary, asserting that, “Canadians will stand up strongly and firmly, if we need to.”

Trump's new trade measures are not without controversy. Critics, including some economists, fear that such tariffs could instigate retaliatory trade actions from affected countries, thus spiraling into broader trade wars. Historically, Trump's tariff policies have elicited reciprocal duties on American goods from trading partners, severing long-standing alliances and complicating international economic interactions.

For more detailed insights into these developments, consult additional sources: Bangkok Post, Business Insider, and The Hill.