U.S. President Donald Trump on Monday expanded his steel and aluminum tariffs to
cover all imports, effectively canceling deals with the European Union, the
United Kingdom, Japan and others.
The new executive orders build off the 25 percent tariff on steel and the 10
percent tariff on aluminum Trump imposed in 2018 during his first administration
by raising duties, closing loopholes and eliminating exemptions, according to a
White House official.
“It’s a big deal. This is the beginning of making America rich again,” Trump
said.
Trump’s nominee to be Commerce secretary, Howard Lutnick, was at Trump’s side
when the president signed the two executive orders.
“When you imposed the tariffs the first time, you added 120,000 jobs,” Lutnick
told Trump. “And since that time, [the tariffs have] been picked away and nicked
away and excluded away, and we’ve lost 107,000 jobs. And remember, these aren’t
just general jobs. These are steel workers in America.”
Trump’s new action keeps the steel tariff at 25 percent but makes it more
comprehensive and raises the aluminum tariff also to 25 percent.
“The Trump 2.0 tariffs are a direct response to the failed policies of the Biden
administration, which allowed China, Russia and many of our allies like Canada,
Mexico, Brazil and the EU to manipulate trade and cripple U.S. industry. These
measures will revitalize domestic production and safeguard critical industries,”
a White House official told reporters on a call previewing the announcement, who
was granted anonymity per the ground rules of the call.
The White House official also said the Trump administration was ending “hundreds
of thousands” of tariff exclusions that have been provided to importers for
particular steel products over the years. That practice began during the first
Trump administration and continued under President Joe Biden.
“Even more impactful, we saw a wide variety of voluntary agreements in lieu of
the tariffs, various kinds of alternative arrangements with … many of our
allies, and these alternative agreements and exemptions were universally
abused,” the White House official said.
The official also alleged that strategic competitors like China and Russia were
transhipping steel through Canada and Mexico, while Japan was targeting the U.S.
market with high-value specialty steel products. South Korea, the official
continued, has been “exploiting” a quota exemption it negotiated with the first
Trump administration to flood the U.S. market, while Brazil had aggressively
ramped up its exports of semi-finished steel to the United States.
Under the two executive orders, Trump will also be implementing tougher
standards for steel and aluminum produced in North America to make it harder for
China and Russia to ship their steel into the United States through those two
countries, the White House official said.
Trump originally imposed a 25 percent tariff on all steel imports and a 10
percent tariff on all aluminum imports in 2018. Those were imposed under Section
232 of the 1962 Trade Expansion Act and applied to most countries around the
world.
However, from the start, a few countries — South Korea, Argentina and Brazil —
opted for steel tariff-rate quotas instead of the simple tariff approach. Those
“TRQs” allow a certain amount of products to enter duty-free before the 25
percent takes effect.
Trump also exempted steel and aluminum imports from Australia from the tariffs
after determining they did not pose a national security threat, a move welcomed
warmly by Canberra. He continued that policy through the remainder of his first
term, and the Biden administration maintained it, as well.
Under pressure from Congress, Trump eventually exempted Canada and Mexico from
the tariffs, a move that also ended Canada and Mexico’s retaliatory duties
against the United States and eased passage of the U.S.-Mexico-Canada Agreement
to replace NAFTA.
Later, after Biden took office, the United States negotiated separate agreements
with the European Union and the United Kingdom to replace the steel and aluminum
tariffs with less restrictive TRQs.
The Biden administration also struck a deal with Japan to replace the steel
tariffs with TRQs but left the aluminum tariffs in place.
The European Union deal, unlike the ones with Japan and the U.K., was intended
to be temporary while the countries negotiated a broader agreement aimed at
forging a united front against China by putting in place measures to discourage
global steel excess capacity and to encourage the manufacturing of steel
produced with lower carbon emissions.
U.S. and EU negotiators failed to reach a deal within the two years they gave
themselves, setting the stage for the EU, under a previously approved
regulation, to resume and double the retaliation it previously had imposed on
roughly $3 billion worth of goods, including American whiskey.
However, the EU agreed in late December 2024 to once again to pause its
retaliation until March 31, 2025, to allow more time to reach a permanent deal
with the United States.
Trump’s action today could reignite the EU’s retaliation, injuring once again a
broad array of American companies that suffered from the first round.
Even with Trump’s earlier tariffs and the various quotas, imports still
accounted for about one-fifth of total U.S. steel consumption in 2024.
The United States imported 22.5 million tons of “finished” steel products and
another 6.3 million tons of steel for further processing. The largest suppliers
were Canada, Brazil, Mexico and Vietnam.
Myah Ward contributed to this report.
Tag - NAFTA
President-elect Donald Trump’s rhetoric around Canada becoming a 51st state is a
distraction from the economic impact a trade war will have on American workers
and businesses, Prime Minister Justin Trudeau charged Sunday.
In an interview with MSNBC’s Jen Psaki, the Canadian prime minister vowed to
fight fire with fire should Trump make good on his Day 1 promise to impose a 25
percent tariff on all Canadian products.
“As we did last time, we are ready to respond with tariffs as necessary,”
Trudeau said on “Inside with Jen Psaki” one of his first sit-down interviews
with American TV since he announced he was stepping down as Liberal leader. He
will remain on until March.
In 2018, Canada slapped dollar-for-dollar tariffs on U.S. steel and aluminum in
response to the Trump administration’s tariffs on Canada’s steel and aluminum
during NAFTA negotiations.
Trudeau is expected to finalize Canada’s retaliatory plan this week when he
meets with Canada’s 13 premiers in person on Wednesday. Foreign Affairs Minister
Mélanie Joly is also set to travel to Washington that day to relay details of
the plan with the incoming Trump administration.
Trump has been taunting the neighbor up north following his initial threat in
November to slap tariffs on Canada if it doesn’t fix the flow of fentanyl and
illegal migration at their shared border.
Trudeau’s government has made efforts to combat those concerns by proposing a
one billion dollar spending plan at the border, which has been presented to the
incoming Trump administration.
“I was pleased to highlight that less than 1 percent of the illegal migrants,
less than 1 percent of the fentanyl that comes into the United States comes from
Canada,” Trudeau said of his visit to Mar-a-Lago in Florida in November where he
dined with Trump. “So we’re not a problem.”
Ontario Premier Doug Ford and British Columbia Premier David Eby have said they
are willing to cut off electricity to the United States in response to
widespread tariffs.
Trudeau also pointed out that as an electricity export to the U.S., including
the West Coast, a 25 percent tariff could increase the cost of energy for
American households.
“No American wants to pay 25 percent more for electricity or oil and gas coming
in from Canada,” Trudeau said.
“And that’s something that I think people need to pay a little more attention
to. And perhaps the idea of a 51st state is distracting a little bit from a very
real question that will increase the cost of living for Americans and harm a
trading relationship that works extremely well.”
Alberta Premier Danielle Smith, who leads Canada’s oil-rich province, traveled
to Mar-a-Lago over the weekend, where she said she spoke to Trump twice.
“We had a friendly and constructive conversation during which I emphasized the
mutual importance of the U.S -Canadian energy relationship, and specifically,
how hundreds of thousands of American jobs are supported by energy exports from
Alberta,” Smith said in a statement posted on X.
“I was also able to have similar discussions with several key allies of the
incoming administration and was encouraged to hear their support for a strong
energy and security relationship with Canada.”
OTTAWA — For the first time in his political career, Justin Trudeau is walking
away from a fight — a move that preserves the three-term prime minister and
five-term lawmaker’s perfect electoral record.
Canada’s prime minister announced Monday that he plans to resign as Liberal
Party leader and will step away once his replacement is chosen.
“I am not someone who backs away, … particularly when a fight is as important as
this one,” Trudeau said. “But I have always been driven by my love for Canada,
by my desire to serve Canadians and by what is in the best interest of Canadians
— and Canadians deserve a real choice in the next election.”
Trudeau led his party for 11 years, launching it from third-party status to
majority government in 2015. When Canadians go to the polls in 2025 — a federal
election now expected this spring — polls suggest they are likely to elect
Canada’s Conservative Party led by Pierre Poilievre.
The prime minister once gained acclaim for besting a Canadian senator in a
charity boxing match in 2012. A dozen bruising years later, he’s decided for the
first time to stay out of the ring.
1. ROPE-A-DOPE
When Justin Trudeau first got into politics, there were doubts. He brought along
a boyish charm and a silver spoon, name recognition and the celebrity he
inherited from his father.
But did the drama-teacher-turned-junior-lawmaker who longboarded to work at his
Montreal office have the right stuff to lead the country?
Dukes up: Trudeau arrived as the underdog to a charity boxing match in 2012, the
year before he was chosen to lead the Liberal Party.
His opponent: Sen. Patrick Brazeau, a built and tattooed former naval reservist
with a black belt in karate.
The odds: Chances looked slim for Trudeau; with 3-1 odds, he was poised to be
pummeled. When Trudeau, a practiced boxer, won the match, Canada’s political
world took notice.
Backstory: In a Rolling Stone interview that proved controversial and offensive,
Trudeau shared his thinking behind the stunt. “I wanted someone who would be a
good foil, and we stumbled upon the scrappy, tough-guy senator from an
Indigenous community. He fit the bill, and it was a very nice counterpoint. … I
saw it as the right kind of narrative, the right story to tell.”
The upshot: The contest served as a warning to future challengers: Don’t
underestimate Trudeau. The prime minister returns often to that match,
journalist Paul Wells noted in a recent book: “Every time he’s in trouble, he
thinks, I’ve been in trouble before and they were wrong to count me out.”
2. AUTUMN GOLD
On a gorgeous autumn day after his election, Trudeau, hand-in-hand with his
then-wife Sophie Grégoire Trudeau and flanked by incoming senior officials,
walked down the grounds of the stately Rideau Hall, paths lined with hundreds of
members of the public eager to for a glimpse of the incoming Cabinet en route to
its swearing-in ceremony.
Change of air: Young. Diverse. Fresh players with impressive resumes and
compelling backstories.
Made-for-TV images: Senior party officials worked tirelessly to draw a contrast
between the previous government of Conservative Prime Minister Stephen Harper,
which had a reputation of being commanding and secretive and hostile to the
media.
“The sight of Trudeau taking selfies, hugging ministers, kissing his wife and
cuddling his kids was digital media gold,” political columnist John Ivison wrote
in his book, “Trudeau: The Education of a Prime Minister.”
The upshot: When he asked why he’d placed as many women as men in his new
Cabinet, Trudeau, standing in front of his new team, replied, “Because it’s
2015,” cementing his image globally as a feminist world leader.
3. DISORDER IN THE HOUSE
May 2016 provided Canadians an unvarnished glimpse of their new prime minister.
The closest thing like it to that point had been an outburst early in his career
when he called another politician in Parliament a “piece of shit.”
Ruh roh: When Trudeau was struggling to pass measures in Parliament as his
rivals delayed, he physically grabbed a lawmaker who was gumming up the works
and attempted to physically drag him to the other end of the House of Commons to
get things going.
In the process, he elbowed the young progressive politician Ruth Ellen Brosseau
in the chest.
Self-inflicted wound: Trudeau looked hot-headed, impatient, flippant and
arrogant. All anathema to his crafted image.
The upshot: At the time, it seemed like an odd interruption, out of character
for someone who’d arrived in office promising to do things differently.
“Elbowgate,” as it became known, marked the first in a series of gaffes that
would wear away at his shining image.
4. HANDSHAKE DIPLOMACY
Despite their differences over trade, U.S. President Barack Obama and Trudeau
shared a “bromance” that made international headlines.
The “family photo” at the “Three Amigos” summit in June 2016 presented a weird
three-way handshake that went from awkward to good vibes when Trudeau went to
shake Obama’s hand and then reached for Mexican President Enrique Peña Nieto’s
too soon.
Charmed offensive: The odd-but-fun triple shake showed off Trudeau’s goofy and
dorky side — warm and fuzzy vibes that wouldn’t last.
His opponent: Trudeau soon had to contend with a Donald Trump presidency, which
threatened to upend NAFTA, the free trade deal with the U.S., Canada’s largest
trading partner.
The stakes: Trump was known as an aggressive handshaker. The one with Shinzo
Abe, prime minister of Japan at the time, went viral when he squeezed his hand
for 19 seconds in a play for dominance and humiliation.
During their first meeting, Trudeau had better results. He’d braced himself
against Trump’s shoulder and at another moment gripped tightly enough to disarm
it.
“The handshake between Justin Trudeau and Donald Trump the first time he went
down to D.C. [after the 2016 U.S. election] were the most important 11 seconds
in Trudeau’s first term as prime minister,” Dan Arnold, former pollster for the
Trudeau admin, said half-jokingly on the Canadian political-insiders podcast,“On
Background.”
The upshot: The PM bucked expectations, buffed up his public image as a fighter
and visually cemented his legacy as a world leader who could hold his ground.
The goodwill and favorable coverage would not last
5. FULLY COMPLETELY
It was a moment between two Canadian celebs that pulled at the heartstrings.
Donning a denim jacket and jeans — a “Canadian tuxedo” — Canada’s first Gen X
prime minister joined thousands of Tragically Hip fans in Kingston, Ontario, in
August 2016 on the band’s final stop of its farewell tour.
A day before the tour was announced, the rock band’s frontman, Gord Downie, had
gone public with his diagnosis of terminal brain cancer.
Shared moment: Trudeau described the band’s discography as “the soundtrack to my
life and to so many of us in so many ways.”
When Downie in 2017 died at 53, Trudeau said Canada lost one of the best of us.
“Gord was my friend, but Gord was everyone’s friend,” he told the media on Oct.
18 that year, choking up.
The upshot: During the final concert, Downie called on Trudeau to make good on
his reconciliation promise to Indigenous Canadians. And he said Trudeau was the
leader to do it — both pressuring the prime minister to make good on his
promises and offering an endorsement at the same time.
6. NAFTA RENEGOTIATIONS: TRUDEAU V. TRUMP
Trudeau and his posse are widely credited domestically for doing one thing very
well: managing the first presidency of Donald Trump, who campaigned vowing to
rip up NAFTA — the major free trade deal underpinning the Canadian economy.
The odds: While Trump was thundering to the Rust Belt about how unfair the deal
with Canada was, the Trudeau administration was forging ties with his campaign.
Trump’s win, which took official Ottawa by surprise, required all hands on deck.
The big test: Trudeau quickly remade his Cabinet, shuffling key positions in the
upper ranks of government and tapping a dedicated U.S. tiger team to target
people in Trump’s orbit. The goal was to have a pro-Canada donut of key players
surrounding the president. The government put into play provincial politicians,
including natural enemies of the Trudeau regime, and even former conservative
Prime Minister Brian Mulroney, who had ties to old guard Republicans and to
Trump.
Legacy moment: “When you read the history of the foreign policy of Justin
Trudeau, the one bright spot will be his response to the Trump election and how
he can come back,” former Canadian diplomat Colin Robertson told POLITICO. “The
negotiations worked out better than I would have thought, given how we went into
it.”
“We really had to scramble.”
The upshot: Trudeau and his team defused the situation, which could have gone
much worse for Canada.
7. THE BIZARRE TRIP TO INDIA
Trudeau’s celebrity cred and familiarity with Canadians offered him slack to
make mistakes, with semi-frequent verbal flubs. He had a penchant for remedying
gaffes through tearful public apologies.
But in 2018 he really stepped in it during his first official visit to India at
the invitation of Prime Minister Narendra Modi.