March 19, 2025
WASHINGTON (AP) — President Donald Trump officially increased tariffs on all steel and aluminum imports to 25% on Wednesday, promising that the taxes would help create U.S. factory jobs.
Trump removed all exemptions from his 2018 tariffs on the metals, in addition to increasing the tariffs on aluminum from 10%. His moves, based off a February directive, are part of a broader effort to transform global commerce. The U.S. president has separate tariffs on Canada, Mexico, and China, with plans to also tax imports from the European Union, Brazil, and South Korea by charging “reciprocal” rates starting on April 2.
The EU announced its own countermeasures on Wednesday. European Commission President Ursula von der Leyen said that as the United States was “applying tariffs worth 28 billion dollars, we are responding with countermeasures worth 26 billion euros,” or about $28 billion. Those measures, which cover not just steel and aluminum products, but also textiles, home appliances, and agricultural goods, are due to take effect on April 1.
Trump told CEOs in the Business Roundtable on Tuesday that the tariffs were causing companies to invest in U.S. factories. “The higher it goes, the more likely it is they’re going to build,” Trump told the group. “The biggest win is if they move into our country and produce jobs. That’s a bigger win than the tariffs themselves, but the tariffs are going to be throwing off a lot of money to this country.”
Trump on Tuesday threatened to put tariffs of 50% on steel and aluminum from Canada, but he chose to stay with the 25% rate after the province of Ontario suspended plans to put a surcharge on electricity sold to Michigan, Minnesota, and New York.
Trump sees the tariffs as leading to more domestic factories, and the White House has noted that Volvo, Volkswagen, and Honda are all exploring an increase to their U.S. footprint.
The top steel exporters to the U.S. are Canada, Mexico, Brazil, South Korea, and Japan, with exports from Taiwan and Vietnam growing at a fast pace, according to the International Trade Administration. Imports from China, the world's largest steel producer, account for only a small fraction of what the U.S. buys.
The lion's share of U.S. aluminum imports comes from Canada.
