On March 12, U.S. President Donald Trump officially implemented a 25% tariff on all steel and aluminum imports to the United States. This move aims to strengthen protections for American steel and aluminum manufacturers and recalibrate global trade rules in favor of the U.S.

Additionally, Trump extended the scope of these tariffs to hundreds of downstream products made from steel and aluminum, including nuts, bolts, bulldozer blades, and beverage cans.

However, this decision has swiftly prompted countermeasures from Europe. The European Commission responded almost immediately, announcing that it will impose retaliatory tariffs on $26 billion worth of U.S. goods starting next month.

Close U.S. allies such as Canada, the UK, and Australia have also criticized the sweeping tariffs. Canada is considering proportional measures, while UK Business and Trade Secretary Jonathan Reynolds stated that the UK will retain all response options to protect national interests. Australian Prime Minister Anthony Albanese called the move unjustified and contrary to the spirit of the enduring friendship between the U.S. and Australia, though he explicitly stated that Australia does not intend to impose retaliatory tariffs.

Albanese emphasized, “Tariffs and escalating trade tensions will harm the economy, leading to slower growth, increased inflation, and ultimately higher costs for consumers.”

Canadian Energy Minister Jonathan Wilkinson said that if the United States continues to impose tariffs on imported steel and aluminum, Canada could take non-tariff measures, such as restricting Canada’s crude oil exports to the United States or imposing tariffs on mineral exports. It is reported that Canada sends about 4 million barrels of crude oil to the United States every day through pipelines, mainly to refineries in the Midwest of the United States. Jonathan Wilkinson added that Canada could also impose tariffs on American ethanol.

Major American steel and aluminum suppliers such as Canada, Brazil, Mexico and South Korea are most affected by Trump’s new tariffs. Among them, Canada is the largest supplier of steel and aluminum to the United States. Previously, these countries enjoyed a certain degree of tariff exemption or quota policy.

Before the above tariffs came into effect, Trump threatened to double the tariff on Canadian steel and aluminum exports to the United States to 50%. But then, Doug Ford, the governor of Ontario, Canada, said that Ontario would suspend the 25% surcharge on its electricity sent to Minnesota, Michigan and New York in the United States. Trump then abandoned this plan.

Doug Ford said he will fly to Washington, D.C., on March 13 with Canadian Finance Minister Dominic LeBlanc for talks with U.S. Commerce Secretary Howard Lutnick and other Trump officials to discuss revising the U.S.-Mexico-Canada trade agreement.

Trump’s new tariffs have been warmly welcomed by U.S. steelmakers because they restore the metal tariffs Trump implemented in 2018, which had been weakened by exemptions and quotas for many countries and specific exemptions for thousands of products.

Philip Bell, president of the American Steelmakers Association, said in a statement: “The revised U.S. steel and aluminum tariffs will ensure that American steelmakers can continue to create new high-paying jobs and make greater investments, knowing that they will not be affected by unfair trade practices.”