Washington: Former U.S. President Donald Trump announced on Sunday that his administration would impose 25% tariffs on steel and aluminum imports this week. Speaking aboard Air Force One, Trump stated that the new tariffs, set to be announced on Monday, will apply to all steel entering the United States, including aluminum.

This move mirrors the protectionist trade policies Trump pursued during his 2017-2021 presidency, when he levied similar tariffs to shield U.S. industries from what he deemed unfair competition from Asia and Europe.

Impact on Major Trading Partners

Canada, the largest steel and aluminum exporter to the U.S., could be significantly affected by the tariffs. Other key suppliers, including Brazil, Mexico, and South Korea, also stand to face economic consequences.

Additionally, Trump announced plans for "reciprocal tariffs", ensuring that foreign governments imposing duties on U.S. goods would face matching levies. He intends to outline these details on Tuesday or Wednesday.

Tariffs as a Political and Economic Tool

Since his return to the political stage, Trump has increasingly weaponized economic measures to achieve foreign policy objectives. Notably, he has threatened tariffs against China, Mexico, and Canada, pausing levies on Canada and Mexico temporarily after both nations pledged to take stronger measures to curb fentanyl trafficking and undocumented migration into the U.S.

However, Trump has proceeded with a 10% tariff on Chinese goods since Tuesday. In response, Beijing retaliated, introducing tariffs on U.S. coal and liquefied natural gas (LNG), covering $14 billion worth of U.S. exports. Meanwhile, Trump’s tariffs on Chinese imports are estimated to impact $525 billion in trade, according to Goldman Sachs.

Global Reaction and Economic Concerns

European leaders have pushed back against Trump's trade policies. French President Emmanuel Macron, in a Sunday interview with CNN, vowed to challenge Trump's tariffs, urging the U.S. to prioritize trade conflicts with China rather than targeting European Union (EU) allies. Macron warned that imposing tariffs on the EU would increase costs and inflation in the U.S.

Similarly, Japan's Prime Minister Shigeru Ishiba, during a Friday meeting with Trump, faced warnings that Japan could face tariffs unless it reduces the U.S. trade deficit to zero.

The U.S. trade deficit reached nearly $920 billion last year, fueling Trump’s renewed push for protectionist policies.

Economic Risks and Consumer Impact

Trump has repeatedly promised a “new golden age” for the U.S. economy, claiming that foreign exporters, not American consumers, would bear the economic burden of tariffs. However, most economic experts disagree, warning that tariffs will likely lead to higher prices for U.S. businesses and consumers.

While acknowledging that some economic pain may result from the China, Mexico, and Canada tariffs, Trump remains firm in his belief that his policies will strengthen American industry in the long run.

His use of tariffs as leverage was recently demonstrated when he threatened Colombia with trade penalties for blocking U.S. deportation flights. Following a day-long standoff, Colombian officials reversed their position, highlighting the political power of Trump’s trade strategy.