Donald Trump Announces Tariffs on Steel, Aluminum Starting on Monday

President Donald Trump announced on Sunday that he will implement tariffs of 25 percent on all steel and aluminum imports to the United States starting on Monday.

Why It Matters

Trump has made tariffs a centerpiece of his economic and foreign policy, already deploying punitive tariffs in response to Colombia's refusal to take deported migrants. He announced tariffs against Mexico and Canada as well, but he delayed their implementation by a month after negotiations with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau.

He did, however, implement tariffs of 10 percent on all imports from China, initially excluding the de minimis exemption for small packages but changing course on that just days later.

The markets took a hit on Friday after Trump first revealed that he might impose reciprocal tariffs against countries that have tariffs against the U.S., causing stock prices to drop amid growing concerns of ever-escalating trade wars.

What Are Tariffs?

Tariffs are taxes on imported goods, typically paid by the importing businesses, which can then pass costs onto consumers through higher prices. The importing business could be any American company that purchases goods from foreign suppliers and brings them into the country for resale, manufacturing, or distribution. Tariffs are often used to protect domestic industries by making foreign goods more expensive and encouraging consumers to buy locally.

What To Know

Trump spoke with reporters on Air Force One and discussed a range of topics, including his announcement of the tariffs, The Associated Press reported.

"Any steel coming into the United States is going to have a 25 percent tariff," he said, adding that he would announce reciprocal tariffs on Tuesday and Wednesday, but did not specify the level.

However, China announced on Sunday that it would hit the U.S. with tariffs on some $14 billion of goods.

"If they are charging us 130 percent and we're charging them nothing, it's not going to stay that way," Trump told reporters.

What People Are Saying

President Donald Trump last week wrote in a Truth Social post: "Anybody that's against tariffs, including the Fake News Wall Street Journal and hedge funds, is only against them because these people or entities are controlled by China or other foreign or domestic companies. Anybody that loves and believes in the United States of America is in favor of tariffs. They should have never ended in favor of the income tax system in 1913. The response to tariffs has been FANTASTIC!"

Larry Summers, treasury secretary under former President Bill Clinton, told CNN last Sunday: "This is a self-inflicted wound to the American economy. I'd expect inflation over the next three or four months to be higher as a consequence, because the price level has to go up when you put a levy on goods that people are buying."

House Speaker Mike Johnson, a Louisiana Republican, wrote last Saturday in an X post: "President Trump is positioning America to be safe and successful again. Today, he is holding Mexico, Canada, and China accountable for their role in the flow of illegal immigrants and illicit drugs across our borders. These countries are now on notice to work quickly to stop the madness. This is long overdue."

What Happens Next?

Countries will have a chance to respond to the tariffs over the next few days, especially once Trump implements his reciprocal tariffs.

China's response with tariffs of its own might indicate that the U.S. will face an ever-escalating tariffs tit-for-tat for trade.