Donald Trump’s steel and aluminium tariffs take effect, sparking global trade fears

By | March 12, 2025

Donald Trump’s Tariffs on Steel & Aluminium: Global Impact

Trump’s New Tariff Policy

Former US President Donald Trump has once again introduced steep tariffs on steel and aluminium imports. The new policy imposes a 25% tariff on steel and 10% on aluminium, aiming to protect American manufacturers. Trump believes these tariffs will boost domestic production and create more factory jobs in the US.

No More Exemptions – Wider Reach

Unlike the previous 2018 tariff policy, this time no country is exempt. Even close allies like Canada, Mexico, and South Korea will face these tariffs. Other affected nations include China, the European Union (EU), and Brazil. The tariffs are set to take effect on April 2, 2025.

Trump’s Justification for Tariffs

Trump has defended the tariffs, stating they are necessary to prevent American industries from being undercut by cheap imports. Speaking at the Business Roundtable Conference, he said:

“The higher the tariffs, the more likely foreign companies are to build their factories here.”

According to Trump, the move will encourage investment in US steel mills and aluminium plants, creating jobs for American workers.

Global Backlash & Market Reactions

Not everyone agrees with Trump’s policy. Countries affected by the tariffs are already planning countermeasures.

  • Australia’s Prime Minister Anthony Albanese criticized the decision, calling it “unjustified” and warning that it could strain international trade relationships.
  • India’s steel industry has also reacted strongly. The Ministry of Steel is urging the Indian government to impose its own 25% tariff on imported steel, especially from China, which has seen a massive 80% rise in exports.
  • The European Union (EU) announced $28.33 billion in retaliatory tariffs, targeting key American exports like bourbon, motorcycles, and agricultural goods.

Meanwhile, the US stock market has taken a hit. The S&P 500 index dropped 8% in the last month, reflecting fears of an escalating trade war.

Impact on India’s Steel & Aluminium Sector

India is one of the countries that exports steel and aluminium to the US. Here’s a quick look at recent trade figures:

  • India exported $450 million worth of steel to the US in 2024.
  • Aluminium exports totaled $820 million.
  • Canada remains the largest aluminium supplier to the US, accounting for 79% of imports.

Given these numbers, Indian steelmakers are now calling for government intervention to protect domestic producers. In December, India’s government started a safeguard duty investigation after reports of surging Chinese steel imports.