WASHINGTON — Former President Donald Trump has announced that the United States will impose a 25% tax on all steel and aluminum imports, including those from Canada and Mexico. He made this statement while traveling from Florida to New Orleans for the Super Bowl. Trump mentioned that additional import duties would also be announced later in the week. These tariffs are aimed at making trade fairer for the U.S. by imposing taxes on imports from countries that already place high duties on American goods.
According to Trump, some nations charge the U.S. as much as 130% in tariffs while America charges nothing in return. He believes this situation is unfair and is determined to change it. Tariffs are being introduced earlier in his presidency compared to his previous term, where he focused more on tax cuts and deregulation. He also sees these taxes as a way to generate revenue and reduce the government’s budget deficit.
Financial markets reacted negatively to Trump’s tariff announcement. Stocks dropped after he first mentioned the new import taxes, and consumer confidence also declined. Many Americans are concerned that these tariffs could lead to higher prices and inflation. Some companies, especially those that rely on imported steel and aluminum, fear that the extra costs will hurt their businesses. Despite these concerns, Trump remains firm in his decision, emphasizing that the U.S. must respond to unfair trade practices.
He also threatened to impose a 25% tax on all Canadian and Mexican imports but recently decided to delay this action for 30 days. Meanwhile, he has already put a 10% tax on Chinese imports. However, he postponed tariffs on small packages from companies like Temu and Shein until officials can figure out how to enforce them. These smaller imports have typically been exempt from duties, but the administration is now considering how to tax them effectively.
Trump’s latest trade policies have raised concerns among global trading partners. South Korea, for instance, quickly responded to the news. The country’s acting president, Choi Sang-mok, called a meeting with top foreign policy and trade officials to discuss how these tariffs might impact South Korean industries. South Korea exported around $4.8 billion worth of steel to the U.S. from January to November last year, making up about 14% of its total global steel exports. The announcement caused South Korean steel companies, including POSCO and Hyundai Steel, to see a drop in stock prices when markets opened.
The South Korean government is now evaluating possible responses to Trump’s decision. Officials have yet to disclose specific actions, but they are closely monitoring the situation to protect their country’s economic interests. Other countries affected by these tariffs are also expected to react in the coming days, as they assess how these changes will impact their economies.
