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Trump to announce new steel, aluminum tariffs on Monday

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Importers to pay 25% on top of existing steel, aluminum

tariffs

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Fate prior metals tariff exemptions for Mexico, Canada

unclear

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Trump says US reciprocal tariffs to match other countries'

rates

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By Jeff Mason

ABOARD AIR FORCE ONE, Feb 9 (Reuters) - U.S. President

Donald Trump said on Sunday he will introduce new 25% tariffs on

all steel and aluminum imports into the U.S., on top of existing

metals duties, in another major escalation of his trade policy

overhaul.

Trump, speaking to reporters on Air Force One on his way to

the NFL Super Bowl in New Orleans, said he will announce the new

metals tariffs on Monday.

He also said he will announce reciprocal tariffs on Tuesday

or Wednesday, to take effect almost immediately, applying them

to all countries and matching the tariff rates levied by each

country.

"And very simply, it's, if they charge us, we charge them,"

Trump said of the reciprocal tariff plan.

A Canadian government source told Reuters that Ottawa would

not react to Trump's steel and aluminum tariff announcement

until it has more information or sees a written order from

Trump.

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 this to become a majority stake.

"Tariffs are going to make it very successful again, and I

think it has good management," Trump said of U.S. Steel.

Nippon Steel ( NISTF ) declined to comment on the latest announcements

from Trump.

QUOTA QUESTIONS

Trump during his first term imposed tariffs of 25% on steel

and 10% on aluminum, but later granted several trading partners

duty-free exemptions, including Canada, Mexico and Brazil.

Former President Joe Biden later negotiated duty-free quota

arrangements with Britain, the European Union and Japan. It was

not immediately clear from Trump's announcement what will happen

to those exemptions and quota arrangements.

Steel mill capacity usage jumped to levels above 80% in 2019

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

China's global dominance of the sector has pushed down steel

prices. A Missouri aluminum smelter revived by the tariffs was

idled last year by Magnitude 7 Metals.

According to government and American Iron and Steel

Institute data, the largest sources of U.S. steel imports are

Canada, Brazil and Mexico, followed by South Korea and Vietnam.

By a large margin, hydro power-rich Canada is the largest

supplier of primary aluminum metal to the United States,

accounting for 79% of total imports in the first 11 months of

2024. Mexico is a major supplier of aluminum scrap and aluminum

alloy.

"The Trump administration is threatening to attack the

aluminum and steel sectors - sectors where the United States

depends largely (on others). Quebec exports 2.9 million tons of

aluminum to them, that is, 60% of their needs. Do they prefer to

get supplies from China?," Francois Legault, premier of Quebec -

a major aluminum supplier, said on X.

"All this shows that we must begin to renegotiate our

free trade agreement with the United States as soon as possible

and not wait for the review planned for 2026. We must put an end

to this uncertainty."

MATCHING RATES

Trump said he would hold a news conference on Tuesday or

Wednesday to provide detailed information on the reciprocal

tariff plan, adding that he first revealed on Friday that he was

planning reciprocal tariffs to ensure "that we're treated evenly

with other countries."

The new U.S. president has long complained about the EU's 10%

tariffs on auto imports being much higher than the U.S. car rate

of 2.5%. He frequently states that Europe "won't take our cars"

but ships millions west across the Atlantic every year.

The U.S., however, enjoys a 25% tariff on pickup trucks, a

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

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

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 European

Union countries.

BORDER STEPS

In a separate Fox News interview, Trump said Canada's and

Mexico's actions to secure their U.S. borders and halt the flow

of drugs and migrants are insufficient ahead of a March 1 tariff

deadline.

Trump has threatened to impose tariffs of 25% on all Mexican

and Canadian imports unless America's two largest trading

partners take stronger actions. He paused the tariffs until

March 1 after some initial border security concessions from the

two countries, with Mexico pledging to add 10,000 National Guard

troops to its border and Canada deploying new technology and

personnel and taking new anti-fentanyl steps.

Asked whether Mexico's and Canada's actions were good

enough, Trump replied: "No, it's not good enough," Trump said.

"Something has to happen, it's not sustainable, and I'm changing

it."

Trump did not say what Canada and Mexico needed to do to

avoid broad tariffs on March 1.