President Donald Trump has announced that he will impose a 25 per cent tariff on all steel and aluminium imports, with details expected on Monday. Speaking to reporters aboard Air Force One on Sunday, Trump confirmed that the new tariffs would apply to all countries but did not specify when they would take effect, reports news agency Bloomberg. 

The president also stated that he would unveil reciprocal tariffs on nations that impose taxes on US imports later in the week. These additional tariffs are expected to follow shortly after their announcement, potentially by midweek.

This latest move is part of Trump’s broader trade strategy, which has already included a 10 per cent tariff on Chinese goods. In response, Beijing has announced $14 billion in retaliatory measures set to take effect on February 10. Market watchers are now looking to see if the US and China can negotiate a resolution before the new Chinese levies take hold. The White House has hinted at an upcoming call between Trump and Chinese President Xi Jinping.

The new tariffs are likely to have a significant impact on the US economy, particularly the energy sector. Oil companies that rely on speciality steel grades—many of which are not produced domestically—may face higher costs. Some firms received exemptions from similar tariffs during Trump’s first term, though it remains unclear if exclusions will be granted again.

Many buyers and sellers of steel and aluminium had anticipated having until March to prepare for the tariff rollout. However, Trump’s previous delay on tariffs set for February 1, following border security discussions with Mexico and Canada, raises questions about potential exemptions for these key trading partners.

Trump has indicated that he may expand tariffs beyond metals, targeting industries such as pharmaceuticals, oil, and semiconductors. He has also threatened import duties on the European Union. The scope and timing of these measures remain uncertain.

Economists warn that these tariffs could increase costs for US manufacturers, raise consumer prices, and disrupt global trade flows. Trump, however, sees tariffs as a means to reduce trade deficits, generate revenue, and advance his economic agenda.

Trump’s steel tariffs come at a time when the domestic steel industry is attempting to recover from a challenging period. US steelmakers have raised concerns about increased imports affecting profitability and production.

The announcement also coincides with Japan’s Nippon Steel Corp.’s stalled $14.1 billion bid to acquire US Steel Corp. The deal was blocked by the Biden administration and faces opposition from Trump as well. Trump has suggested that Nippon Steel invest in US Steel instead of acquiring a controlling stake. The companies are now challenging the US block in court.

As Trump prepares to roll out his latest round of tariffs, businesses, policymakers, and international partners will be closely monitoring the potential economic and geopolitical ramifications of his aggressive trade agenda.