Trump's new tariff threat: Trade war intensifies

US President Donald Trump noted that he plans to impose a 25 percent tariff on all steel and aluminum imports. Emphasizing that countries that have imposed taxes on US goods will also face 'more' taxes, Trump stated that the decisions will be formalized within this week. Trump reiterated that he would also impose additional tariffs on the EU.

In a statement made on Sunday, Trump announced that he would officially announce the tariffs to be applied to steel and aluminum on Monday, and other additional taxes during the week. Trump, who did not specify which countries would be subject to retaliatory tariffs, stated that not all countries would be affected by the decisions.

Trump's latest tariff threats come after he announced plans last month to impose a 25 percent tariff on all Canadian and Mexican goods, and a 10 percent tariff on Chinese imports. The US President agreed to postpone measures against Canada and Mexico after they promised to do more to stop the flow of drugs and illegal immigrants across the US border.

In an interview with reporters on Air Force One, Trump stated the following:

'It's very simple, if they charge us a fee, we charge them a fee. If they are charging us 130 percent tax and we are charging them nothing, we cannot let that continue.'

Trump conditioned the removal of the additional taxes imposed by the US on the countries in question exporting at least the same amount as they import. However, Trump did not set any conditions for the removal of the new taxes he imposed on China.

REACTION FROM CANADA TO TRUMP

According to data from the US government and the American Iron and Steel Institute, Canada is the largest supplier of steel to the US, followed by Brazil, Mexico, South Korea, and Vietnam. Canada is also the primary aluminum supplier to the US, with China, Mexico, and the United Arab Emirates following Canada.

Canadian Minister of Innovation Francois-Philippe Champagne reacted to Trump in a post on X, stating the following:

''Canada supports key industries in the US, especially the steel and aluminum industries, as well as defense, shipbuilding, and automotive. This makes North America more competitive and secure. We will continue to stand up for our workers and industries in Canada.''

Australian Prime Minister Anthony Albanese emphasized that he plans to hold a meeting with Trump and will bring up the issue of tariffs. Speaking in Parliament, Albanese made the following statement:

''We will continue to fight alongside the US administration for Australia's national interests. Furthermore, we believe this (the reduction of tariffs) is also in the national interest of the US. Because tariffs, of course, do not tax us, but those who buy our products.''

According to UN trade data, Australia exported approximately 237 million dollars worth of steel and iron to the US in 2023, and approximately 275 million dollars worth of aluminum the following year.

US steel import data between March 2024 and February 2025 Source: trade.gov

EU ALSO IN TRUMP'S SIGHTS

The tariffs Trump imposed on China in retaliation for US exports went into effect on Tuesday. Trump also reported earlier this month that the European Union (EU) could face tariffs. Arguing that 'almost nothing' is imported from EU countries, Trump claimed that the US buys "everything" from European countries.

Trump told reporters on February 2:

''The EU has really crossed the line. What they are doing is an atrocity. I don't have a calendar, but it's coming very soon (referring to the tariffs).''

Asian stock markets reacted mixedly to Trump's latest statements. As of 02:30 Turkish time, Japan's Nikkei 225 index fell 0.1 percent, while Hong Kong's Hang Seng index rose 1.2 percent and China's SSE Composite index rose 0.3 percent.