President Donald Trump announced on Monday that he will apply a 25% tariff on every steel and aluminum import coming into the United States, without granting any exceptions or exemptions.
Despite the fact that the US sources most of its steel from Canada, Brazil, and Mexico, the move is primarily—though indirectly—intended to target China.
In reality, the United States purchases only a small amount of steel directly from China, which is the world’s largest steel producer. When Trump introduced a 25% tariff on steel in his first term—later upheld by former President Joe Biden—many American importers simply shifted their business to other suppliers.
Nevertheless, Chinese steel still reaches the United States through indirect means. Sometimes it’s sold to other countries first, then shipped on to the US. In other instances, it’s mislabeled and moved through various resale channels.
According to a Trump administration official, these updated 25% tariffs are meant to close off loopholes and stop the numerous workarounds that have allowed some importers to circumvent existing rules. One common strategy, the official explained, is importing steel in a partially finished form, carrying out minimal finishing steps overseas, and then shipping the product to the US to avoid higher duties.
Speaking to reporters aboard Air Force One on Sunday, Trump said he was preparing the steel and aluminum announcement and planned to host a news conference this week to introduce “new reciprocal tariffs.”
Just last week, Trump added a 10% tariff on all Chinese imports, building on the duties the US had already imposed on China. Beijing responded by placing tariffs on certain chips and metals.
Trump has, however, begun softening some of these restrictions. For example, he has temporarily halted tariffs on items under $800 until the Commerce Department devises a proper tracking mechanism. He has also suspended the 25% tariff on goods from Mexico and Canada until at least March 1.
