Trump announces 25% tariffs on steel and aluminium, igniting fears of global economic retaliation

President Donald Trump has reignited a global trade war by imposing sweeping 25% tariffs on all steel and aluminium imports into the United States, marking a dramatic escalation of his hardline economic policies. Speaking aboard Air Force One on his way to the Super Bowl, Trump declared that the new duties, which go beyond existing metal tariffs, will take effect immediately.

The move has sent shockwaves through international markets, with key suppliers—Canada, Brazil, and Mexico—scrambling to respond. Canada, the largest provider of aluminium to the U.S., expressed outrage. “Canadian steel and aluminium support key industries in the U.S. from defence, shipbuilding and auto,” said Innovation Minister François-Philippe Champagne, vowing to defend Canadian interests.

Trump’s latest salvo also includes a “reciprocal tariff” plan, which will match the rates imposed by any country on American goods. “If they charge us, we charge them,” Trump declared, signalling a seismic shift in U.S. trade strategy that could inflame tensions with the European Union, China, and other major economies.

The policy immediately raised concerns about global supply chains, particularly in the automotive and construction industries, where steel and aluminium are vital. Former President Joe Biden had previously negotiated quota exemptions with the EU, Japan, and Britain, but it remains unclear whether Trump will revoke those agreements.

The announcement comes as Trump ratchets up pressure on Canada and Mexico over border security. He has threatened to impose 25% tariffs on all imports from both countries unless they take stronger action against illegal immigration and drug trafficking before the March 1 deadline. Despite Mexico deploying 10,000 National Guard troops and Canada implementing new security measures, Trump dismissed their efforts as “not good enough.”

With a trade war brewing and diplomatic tensions rising, global leaders now face a crucial question—will they retaliate, or will they bow to Trump’s economic hammer?