Donald Trump has announced plans to impose a 25% tariff on all steel and aluminium imports into the United States, a move expected to have the biggest impact on Canada, one of the country’s largest trading partners.
Trump also stated that reciprocal tariffs would be introduced on any country that taxes US imports, though he did not specify which nations would be targeted or if any exemptions would apply. He defended the decision as necessary to protect American industry, particularly in times of national emergency.
During his first term, Trump placed similar tariffs on steel and aluminium imports from Canada, Mexico, and the European Union, though the levies on Canada and Mexico were lifted a year later. Those tariffs raised costs for industries like soft drinks and car manufacturing, with consumers ultimately bearing the price increase.
The announcement led to a fall in South Korean steel and car company shares, as the country is a key exporter of steel to the US.
Meanwhile, gold prices hit a record high, reflecting investor concerns over economic uncertainty.