President Donald Trump is hitting foreign steel and aluminum with a 25% tax
A mural depicting steel workers stands at the Stelco steel production facility in Hamilton, Ontario, on Monday, Feb. 10, 2025. gave America’s struggling steel and aluminum producers some relief from intense global competition, allowing them to charge higher prices. In anticipation of the new tariffs, shares of steel and aluminum producers climbed Monday. Nucor rose 5.6%, Cleveland-Cliffs jumped 17.9% and Alcoa ticked up 2.2%.
“We were significantly impacted,’’ he said. “The challenges we faced were unprecedented -- rapid inflationary impacts from domestic steel producers. We saw steel prices rise within a few months about 70% over what they had been ... Our suppliers simply broke contracts and gave us an option: Take this or take nothing.’’
Still, the new taxes on foreign steel and aluminum and Trump’s other import tax plans – including his promise to raise American tariffs to match those charged by other countries -- are likely “to boost U.S. inflation and weigh on global growth this year,’’ Jennifer McKeown and Hamad Hussain of Capital Economics wrote Monday.. Canada is the No. 1 supplier of foreign steel and aluminum to the United States. Mexico is the No.
The 2018 tariffs — 25% on steel and 10% on aluminum — provoked outrage in Canada and Mexico, U.S. neighbors and allies that resented being hit with trade sanctions and labeled as threats to U.S. national security. But the tariffs hammered downstream businesses like Zimmerman’s that had to pay the higher prices. In 2021, production at downstream companies dropped by nearly $3.5 billion because of the tariffs, canceling out the $2.3 billion uptick in production that year by aluminum producers and steelmakers, according to a 2023 study by the U.S. International Trade Commission, an independent federal agency that investigates trade disputes.
“The net effect of all these tariffs at that time — on China, aluminum, steel, plus retaliation — was to reduce U.S. manufacturing unemployment,’’ he said. “I’m expecting the same thing this time around.’’
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