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Trump to announce steel and aluminium tariffs on Monday

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Importers to pay 25% on top of existing tariffs

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Pledges add to multi-front trade upheaval

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Trump also promises broader reciprocal tariffs for

Tues/Wed

(Wraps story strands, adds Von der Leyen-Vance meeting plan and

German efforts to head off tariffs, paragraph 20)

By Jeff Mason

ABOARD AIR FORCE ONE/SEOUL/FRANKFURT, Feb 10 (Reuters) -

President

Donald Trump

is expected to introduce new

25% tariffs

later on Monday on all steel and aluminium imports into the

U.S., on top of existing metals duties, in another major

escalation of his shake-up of trade policy.

As the risk mounts of a multi-front trade war, the European

Union flagged it may retaliate and Trump promised further

announcements on Tuesday or Wednesday of broader reciprocal

tariffs to match those of countries importing U.S. goods.

Shares in European and Asian steelmakers fell while

their U.S. counterparts rose.

Speaking to reporters on Air Force One on his way to

Sunday's NFL Super Bowl in New Orleans, Trump said he would

announce the metals tariffs on Monday and the reciprocal tariffs

soon afterwards, adding "if they charge us, we charge them."

The largest sources of U.S. steel imports are Brazil, Canada

and Mexico, followed by South Korea and Vietnam, according to

government and American Iron and Steel Institute data.

Meanwhile, Canada, whose extensive hydropower resources aid

its metal production, accounted for 79% of U.S. primary

aluminium imports in the first 11 months of 2024.

During his first four-year term from 2017, Trump imposed

tariffs of 25% on steel and 10% on aluminium.

But he later granted several countries exemptions, including

Australia, Brazil, Canada and Mexico, and his successor Joe

Biden later negotiated duty-free quota deals with Britain, Japan

and the EU.

With more demands for exemption and negotiation in prospect,

some said Trump's action would first of all damage the U.S.

economy by raising the cost of the raw materials it depends on.

"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."

Australia, also a strategic U.S. ally, has been making

representations on aluminium and steel for months.

"Australian steel and aluminium are creating thousands of

good paying American jobs, and are key for our shared defence

interests," Trade Minister Don Farrell said.

EU AND SOUTH KOREA WEIGH RESPONSES TO TRUMP TARIFFS

In South Korea, the Industry Ministry called in steelmakers

to discuss how to minimise the impact of tariffs.

Hyundai Steel shares dipped by as much as 2.9%

amid a broader decline among South Korean steelmakers.

European steelmakers account for about 15% of imports into

the United States, and shares in ArcelorMittal,

and Voestalpine slipped between 1.3% and 2.5%.

Germany's Thyssenkrupp and Salzgitter were

little changed.

The European Commission said it saw no justification for the

imposition of tariffs: "We will react to protect the interests

of European businesses, workers and consumers."

It said Commission President Ursula von der Leyen would meet

U.S. Vice President JD Vance in Paris on Tuesday during an AI

summit. The German government said it was "working towards

ensuring that these measures [tariff increases] do not

materialise".

Shares in U.S. steel and aluminium makers jumped.

Nucor ( NUE ), U.S. Steel, and Cleveland-Cliffs ( CLF )

rose between 6% and 10% in premarket trading, while

Century Aluminum ( CENX ) added 8.5% and Alcoa ( AA ) 5%.

Trump also said that, while the U.S. government would allow

Japan's Nippon Steel ( NISTF ) to invest in U.S. Steel, it

would not allow a majority stake.

"Tariffs are going to make (U.S. Steel) very successful

again," Trump said.

Nippon Steel ( NISTF ) declined to comment, but Japan's Chief Cabinet

Secretary Yoshimasa Hayashi said the company was considering a

bold change in plan.

U.S. steel mill capacity usage jumped above 80% in 2019

after Trump's initial tariffs, but has since fallen as China's

global dominance - unaffected by its exclusion by tariffs from

the U.S. market - has pushed down prices.

A Missouri aluminium smelter revived by the previous tariffs

was idled last year by Magnitude 7 Metals.

Kevin Dempsey, head of the American Iron and Steel

Institute, said it would work with Trump "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."

TRUMP PROMISES RECIPROCAL TARIFF ANNOUNCEMENT SHORTLY

Trump also promised detailed information on Tuesday or

Wednesday on his reciprocal tariff plan.

The president has long complained about the EU's 10% tariff

on auto imports, much higher than the U.S. car rate of 2.5%.

However the U.S. applies a 25% tariff on pickup trucks, a

vital source of profit for Detroit automakers General Motors ( GM )

, Ford and Stellantis' ( STLA ) U.S. operations.

Overall, the U.S. trade-weighted average tariff rate is

about 2.2%, according to World Trade Organization data, compared

to 12% for India, 6.7% for Brazil, 5.1% for Vietnam and 2.7% for

the EU.

Chris Swonger, CEO of the Distilled Spirits Council of the

United States, said Trump's new steel tariffs could lead to the

EU imposing retaliatory duties on American whiskey.

"We are urging that the U.S. and EU move swiftly to find a

resolution. Our great American whiskey industry is at stake. A

50% tariff on America's native spirit will have a catastrophic

outcome for the 3,000 small distilleries across the United

States," he said.

Trump had already threatened to impose tariffs of 25% on all

imports from America's two largest trading partners, Canada and

Mexico, saying they must do more to halt the flow of drugs and

migrants across the U.S. border.

After some border security concessions, Trump paused the

tariffs until March 1. But he told Fox News that more measures

were needed.

"Something has to happen, it's not sustainable," he said,

"and I'm changing it."