Trending Now
We have updated our Privacy Policy and Terms of Use for Eurasia Group and its affiliates, including GZERO Media, to clarify the types of data we collect, how we collect it, how we use data and with whom we share data. By using our website you consent to our Terms and Conditions and Privacy Policy, including the transfer of your personal data to the United States from your country of residence, and our use of cookies described in our Cookie Policy.
{{ subpage.title }}
Endorsed by steelworkers onstage, then-Republican presidential nominee Donald Trump puts on a hard hat during his Make America Great Again Rally in Latrobe, Pennsylvania, on Oct. 19, 2024.
Trump tariffs steel and aluminum at 25%
US President Donald Trump signed an executive order Monday imposing 25% tariffs on all steel and aluminum imports to the US. This raises the tariff rate on aluminum to 25% from the previous 10% that Trump imposed in 2018, and it reinstates a 25% tariff on “millions of tons” of steel and aluminum imports previously exempted or excluded.
“Today I’m simplifying our tariffs on steel and aluminum,” Trump stated. “It’s 25% without exceptions or exemptions.”
Cue the negotiations. On Monday, Trump reportedly took a call from Australian Prime Minister Anthony Albanese, who is seeking a carve-out for Australian steel exports. Albanese described their conversation as “constructive and warm” but did not want to “speak on [Trump’s] behalf.”
European nations said they would discuss retaliatory measures. Canada, which is the US’ biggest source of aluminum and one of its top sources of steel, had already promised to impose retaliatory tariffs, which it withdrew on Feb. 3. Mexican President Claudia Sheinbaum, who did the same, said her country would keep a “cool head” in anticipation of Trump’s announcement.
It is not yet clear when the new tariffs will take effect. Trump added that he will also consider additional tariffs on cars, pharmaceuticals, and computer chips.
Why now? Trump’s announcement came two days after the visit of Japanese Prime Minister Shigeru Ishiba, who announced that Japan would increase its US investment to $1 trillion, including a commitment from Nippon Steel to “invest heavily” in US Steel, after a $15 billion buyout was nixed last year by the Biden administration. The deal is another reflection of Trump’s plan to strengthen domestic steel production and make imports less attractive – or even necessary.
Was there a connection? “It’s certainly possible,” says Eurasia Group’s Japan Director David Boling. “But we knew steel tariffs were coming — it was only a matter of time. While Trump is proud to be Tariff Man, he could also be called the Man of Steel. Steel is his favorite industry.” We’re waiting to see whether Ishiba picks up the phone like Albanese and leverages Nippon’s investment to lift the levies.President Donald Trump speaks to reporters aboard Air Force One en route to New Orleans to attend the Super Bowl, on Feb. 9, 2025.
Hard Numbers: Trump to unveil steel tariffs, Paris AI summit begins, Ecuador faces runoff election, Maoist rebels killed, Baltics energized by Europe, Eagles soar over Chiefs
25: Donald Trump says he plans to announce a 25% tariff on steel and aluminum imports from all countries, including Mexico and Canada. It’s unclear when the tariffs will take effect, but the US president said Sunday that he would make a formal announcement on Monday.
80: Government and industry leaders from at least 80 countries are convening in Paris on Monday and Tuesday as the AI Action Summit gets underway inside the historic Grand Palais. This year’s summit, the third following similar gatherings in Bletchley Park (UK) and Seoul, Korea, is co-hosted by France’s President Emmanuel Macron and India’s Prime Minister Narendra Modi,and it will feature an open dialogue about AI regulation and innovation at a critical time for both geopolitics and the technology itself. US Vice President JD Vance is attending as he begins his first official trip abroad. GZERO’s Tony Maciulis will be reporting from the summit and bringing us an interview with Paris Peace Forum Director General Justin Vaïsse on Tuesday.
1: Ecuador’s President Daniel Noboa was expected to prevail in Sunday’s election and avoid a runoff, but the race against his leftist opponent, Luisa Gonzalez, proved extremely close. Up less than 1% at the time of writing, and with nearly 80% of the ballot boxes counted, Noboa had 44.5% of the vote compared to Gonzalez's 44.1%. If neither candidate secures an outright majority, a runoff will be held on April 13.
31: Security forces battled Maoist rebels in the Bijapur district of Chattisgarh in central India on Sunday, killing 31 insurgents. The left-wing communists, part of the Naxalite movement, have been fighting with India’s government since 1967. Two Indian commandos were also killed in the clash.
3: The three Baltic countries have bid farewell to Russia’s power grid. Estonia, Latvia, and Lithuania completed their switch from the Russian to the European grid on Sunday. European Commission President Ursula von der Leyen called the move — amid heightened security owing to suspected sabotage of underwater cables and pipelines in the Baltic Sea — a new era of freedom for the region.
40-22: The Kansas City Chiefs were hoping for a historic hat-trick Super Bowl win last night in New Orleans, but it wasn’t to be. The Philadelphia Eagles dominated from the start, closing out the first half at 24-0, and finishing the game 40-22, with their quarterback, Jalen Hurts, winning MVP.
US President Joe Biden speaks to members of the media on the South Lawn of the White House after arriving on Marine One in Washington, DC, US, on Monday, Sept. 2, 2024.
Report: Biden set to reject US Steel deal
Nippon Steel is playing its hand close to its vest and hasn’t commented on the reports of the deal being blocked. Its nearly $15 billion offer was approved by US Steel shareholders in the spring, and it would be highly unusual for a company from a close ally like Japan to be prohibited from investing in the US.
Shares in US Steel fell by roughly 18% on Wednesday’s news, trading around $29, well under the $55 per share value that Nippon Steel offered in December 2023. The company warned thousands of jobs were at risk in the key — if not downright determinative — swing state of Pennsylvania should the deal fall through. Nonetheless, Democrats are betting that this decision will help them win the state by playing up protectionist bonafides. We’ll see if the theory holds.