President Donald Trump has announced a 25% import tax on all steel and aluminum entering the US, significantly expanding existing trade restrictions.

The tariffs, set to take effect on March 4, will raise import costs despite warnings of retaliation from key trade partners, including Canada, the largest supplier of these metals to the U.S.

American businesses reliant on imports have also expressed concerns, but Trump insists the move will strengthen domestic production.

Rejecting exemptions, he stated he was “simplifying” trade rules.

"This is a big deal, the beginning of making America rich again," he declared.

"Our nation requires steel and aluminium to be made in America, not in foreign lands," he added.

When asked if tariffs could increase prices for consumers, the US president responded: "Ultimately it will be cheaper."

"It's time for our great industries to come back to America...this is the first of many," he added, suggesting other tariffs could focus on pharmaceuticals and computer chips.

The US is the world's largest importer of steel, counting Canada, Brazil and Mexico as its top three suppliers.

Canada alone accounted for more than 50% of aluminium imported into the US last year. If the tariffs come into force, they are expected to have the most significant impact on Canada.

In 2018, during his first term, Trump announced tariffs of 25% on steel and 15% on aluminium, but eventually negotiated carve-outs for many countries including Australia, Canada and Mexico.

Source: BBC

BDST: 1224 HRS, FEB 11, 2024
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