US Reinstates 25% Tariffs on Steel, Aluminum from Key Partners

On March 12, 2025, the United States officially reinstated tariffs of up to 25% on steel and aluminum imports from key trade partners, including Canada, Mexico, the European Union, Japan, South Korea, the United Kingdom, Australia, Argentina, and Brazil. The move follows President Donald Trump’s decision to terminate alternative agreements with these countries, citing their inability to address the perceived threat of excess steel capacity and distorted pricing to US national security.

Mexico’s Response

President Claudia Sheinbaum acknowledged the implementation of US tariffs but announced that Mexico would wait until Apr. 2 before considering a formal response. Economy Minister Marcelo Ebrard and Finance Minister Edgar Amador are engaged in discussions with US officials to explore diplomatic solutions. Sheinbaum emphasized that while Mexico remains open to dialogue, it will evaluate countermeasures if necessary, working closely with domestic steel and aluminum producers.

Canada’s Swift Retaliation

Canada’s Finance Minister Dominic LeBlanc announced reciprocal tariffs on US imports totaling US$29.8 billion. These include a 25% tariff on US$12.6 billion worth of steel, US$3 billion of aluminum, and an additional US$14.2 billion on other goods, such as computers and sports equipment. LeBlanc stressed that Canada’s measures are proportionate and aimed at protecting its economic interests.

Foreign Affairs Minister Mélanie Joly criticized the US tariffs as economic coercion and a potential threat to Canadian sovereignty. Industry Minister François-Philippe Champagne warned that the tariffs would raise manufacturing costs in the United States, given its reliance on Canadian metals, particularly aluminum, of which 60% originates from Quebec.

Japan’s Approach

Japanese Chief Cabinet Secretary Yoshimasa Hayashi expressed regret over the US decision, despite Japan’s requests for an exemption. He emphasized that high-quality Japanese steel and aluminum significantly enhance US manufacturing competitiveness. Japan will continue diplomatic efforts to seek a resolution.

European Union’s Proportional Response

The European Commission condemned the US tariffs as unjustified and harmful. In response, the EU announced a two-step approach:

• Restoration of countermeasures: The EU will reinstate its 2018 and 2020 tariffs on Apr. 1, targeting €8 billion of US goods.

• New countermeasures: By mid-April, the EU will impose tariffs on an additional €18 billion of US exports, bringing the total impact to €26 billion.

These measures include a 25% tariff on US steel and aluminum and 10%-50% tariffs on agricultural goods, motorcycles, bourbon, and other products.

“Tariffs are taxes that harm businesses and consumers on both sides of the Atlantic. The EU’s response is strong but proportionate,” said European Commission President Ursula von der Leyen. She reiterated the EU’s willingness to negotiate while protecting European industries.

The EU will consult stakeholders until Mar. 26 before finalizing and implementing its measures.

South Korea’s Response

South Korea’s Ministry of Trade, Industry, and Energy convened an emergency meeting with industry leaders to address the tariffs. Industry Minister Ahn Duk-geun pledged to protect Korean companies and strengthen communication with local industries.

"We will work to arrange meetings between senior trade officials from Seoul and Washington for negotiations and closely monitor the response measures of other major countries affected by the US tariffs," Ahn said.

Brazil’s Response

Finance Minister Fernando Haddad announced that Brazil is considering protective measures for its steel industry. Following discussions with the Brazilian Steel Institute, Haddad noted that US claims regarding Brazilian exports are inaccurate.

“The steel sector presented strong arguments that this is not even beneficial for the Americans,” said Haddad. The government will review proposals and submit a technical note to the Ministry of Development, Industry, Commerce, and Services (MDIC), though no timeline has been set.

United Kingdom’s Response

Prime Minister Sir Keir Starmer stated that the UK would "keep all options on the table" while assessing the implications of US tariffs. The government is expected to explore potential countermeasures and negotiations to minimize their impact.

Australia’s Response

Prime Minister Anthony Albanese condemned the US tariffs as unjustified but ruled out retaliatory measures. Australia plans to pursue diplomatic and trade negotiations to address the issue.

US Response to EU Tariffs

In response to the EU’s new tariffs on US products, President Trump announced additional tariffs on EU imports.

“The European Union treats us very badly, and they have for years,” Trump said during a meeting with Irish Prime Minister Micheál Martin. He accused Ireland and other EU nations of exploiting US tax policies to attract American companies.

Trump reiterated his reciprocal tariff policy, effective Apr. 2: “Whatever they charge us—25%, 20%, or even 200%—that is what we will charge them.”