Trump announces higher steel and aluminium tariffs for Canada

WASHINGTON: US President Donald Trump plans to impose additional high tariffs on steel and aluminium imports from Canada, he posted on his Truth Social platform on Tuesday, reported German news agency dpa.

"Based on Ontario, Canada, placing a 25 per cent tariff on 'electricity' coming into the United States, I have instructed my Secretary of Commerce to add an additional 25 per cent tariff, to 50 per cent, on all steel and aluminum coming into the United States from Canada, one of the highest tariffing nations anywhere in the world," Trump posted.

In February, Trump implemented tariffs of 25 per cent on steel and aluminium imports, intended to apply generally to imports from all other countries, which are also expected to come into effect on Wednesday.

Trump argues that excessive steel and aluminium imports threaten the national security of the US. Furthermore, he accuses China of flooding the global market with cheap metal.

In the Truth Social post, the US president expressed his displeasure with what he views as excessively high tariffs imposed by Canada and criticised the neighbouring country's spending on national security as too low.

He reaffirmed his goal that Canada should become a state of the US, a demand that has sparked strong criticism and protests there for weeks.

According to recent data, around a quarter of the steel used by the industrial sector in the US is imported. For aluminium, that figure is over 40 per cent. The percentage is significantly higher for secondary aluminium, which is derived from recycled material.

Economists expect that higher import costs will increase production costs for many US industrial firms. Customers are likely to face price increases, and the competitiveness of firms abroad could decline.

Steel and aluminium are actually covered under the United States-Mexico-Canada Agreement (USMCA). For these goods, Trump had granted a one-month tariff deferment last week after imposing blanket tariffs on goods from Canada and Mexico. It remains unclear whether this deferment will also continue to apply to steel and aluminium from Canada and Mexico.

Since taking office, Trump's tariff policy has been inconsistent. For instance, he partially suspended tariffs on goods from Canada and Mexico shortly after their introduction - while simultaneously threatening new punitive measures.

--BERNAMA-dpa

Read the latest news here