Effective today, March 12, the United States will impose a 25% tariff on all steel and aluminum imports under the second round of President Donald Trump’s trade policy.
Steel and aluminum imports have faced tariffs since Trump’s first term in office. The initial tariffs included a 25% levy on steel and 10% on aluminum, as well as exemptions and alternative agreements. Canada and Mexico, two of the U.S.’s largest trade partners, were previously granted full exemptions. However, these exemptions expired today, and the base aluminum tariff has risen to 25%.
Steel and aluminum are critical to the automotive industry. In 2024, the United States imported roughly $31.5 billion of steel and $18.5 billion of aluminum. Canada was the largest supplier, accounting for 23% of steel imports and 51% of aluminum imports. While most steel in the United States is produced domestically, imports still made up 23% of finished steel last year.
On March 11, President Trump proposed to double tariffs on Canadian steel and aluminum imports to 50% in response to Ontario Premier Doug Ford’s retaliatory 25% surcharge on electricity exports.
The surcharge would have the most significant impact on Minnesota, Michigan, and New York. However, after Ford withdrew his plans, President Trump reconsidered.
Last week, the Trump administration granted a one-month exemption to auto imports covered under the USMCA to mitigate the disruption of the U.S. automotive industry. This reprieve will allow automakers additional time to re-evaluate their production and sourcing strategies and shift more investment back to the United States. The temporary suspension is effective until April 2. On that day, the auto tariffs will resume, and new reciprocal tariffs will be enforced.
