Speaking to the press on Sunday, President Donald Trump said he would announce 25 percent tariffs on steel and aluminum imports into the U.S. on Monday, according to Reuters. “If they charge us, we charge them,” Trump said, adding that reciprocal tariffs are also on the way.
Brazil, Canada, and Mexico are the biggest importers of steel into the U.S., followed by South Korea and Vietnam. As for aluminum, Canada is by far the largest source of imported aluminum in the States. Canada accounted for 79 percent of U.S. primary aluminum imports in the first 11 months of 2024.
President Trump says he’ll announce on Monday that the United States will impose 25% tariffs on all steel and aluminium imports, including from Canada and Mexico. pic.twitter.com/SSlB9NP5RT
— Newsweek (@Newsweek) February 10, 2025
The expected metal tariffs boosted stock prices for American steel and aluminum makers. As of this writing, Nucor and U.S. Steel stocks are up between four and six percent, and Cleveland-Cliffs has spiked by over 12 percent. Alcoa is up three percent, and Century Aluminum is up nine percent. Conversely, international stocks for steel and aluminum makers are slumping on the tariff news.
“Canadian steel and aluminum support key industries in the U.S. from defence, shipbuilding and auto,” Canadian Innovation Minister Francois-Philippe Champagne posted on X. “We will continue to stand up for Canada, our workers, and our industries.”
Let’s all be clear.
Canadian steel and aluminum support key industries in the U.S. from defence, shipbuilding and auto.
This is making North America more competitive and secure.
We will continue to stand up for Canada, our workers, and our industries. pic.twitter.com/NBFeU6Y8zN
— François-Philippe Champagne (FPC) 🇨🇦 (@FP_Champagne) February 10, 2025
American Iron and Steel Institute boss Kevin Dempsey said it would work with the president “to implement a robust and reinvigorated trade agenda to address the many foreign market-distorting policies and practices that create an unlevel playing field for American steelmakers”.
If the tariffs go through, the U.S. auto manufacturing sector could reconsider its sources for steel and aluminum. Whether U.S. supply will be able to meet demand to offset imported metals remains to be seen.
As for GM, specifically, it already sources much of its steel and aluminum from the U.S. U.S. Steel and Cleveland-Cliffs are key GM suppliers, but it also gets recycled steel from ArcelorMittal North America, produced in Hamilton, Ontario. Much of The General’s aluminum comes from IMCO Recycling, which processes aluminum in Michigan. The recycled aluminum is used in engines and other components.
This news comes shortly after Trump’s threatened 25 percent tariffs on all imports from Canada and Mexico were delayed at the last minute following concessions from Prime Minister Trudeau and President Sheinbaum on border security.
