U.S. President Donald Trump has revealed plans to impose additional 25% tariffs on all steel and aluminum imports, marking a significant escalation in his trade policies and sparking concerns that the price of Bitcoin will fall below $94,000.
Speaking aboard Air Force One on Sunday while en route to the NFL Super Bowl in New Orleans, Trump stated that the new tariffs would be formally announced on Monday.
Trump also disclosed plans for reciprocal tariffs, which would be introduced on Tuesday or Wednesday. These measures will be applied to all countries and will match the tariff rates imposed by each nation on U.S. exports.
“And very simply, it’s, if they charge us, we charge them,” Trump explained when discussing his reciprocal tariff strategy.
This latest tariff concerns will add further downside pressure on the Bitcoin price, as it currently trades around $96,100 on Binance.
Canada Holds Off on Immediate Response
A Canadian government official indicated that Ottawa would not react to the announcement until further details were available or a written order had been issued by the Trump administration. Canada has historically been one of the largest suppliers of both steel and aluminum to the United States.
Trump also addressed Japanese company Nippon Steel’s planned investment in U.S. Steel, emphasizing that while the U.S. government would allow the deal, it would not permit Nippon Steel to obtain a majority stake.
“Tariffs are going to make it very successful again, and I think it has good management,” Trump said, referring to U.S. Steel.
Nippon Steel has not provided a response to Trump’s latest statements.
Impact on Existing Trade Agreements
During his first term, Trump had imposed 25% tariffs on steel and 10% on aluminum but later granted exemptions to certain trade partners, including Canada, Mexico, and Brazil. His successor, Joe Biden, later negotiated duty-free quota agreements with the European Union, Japan, and the United Kingdom. It remains unclear how Trump’s new measures will affect these existing arrangements.
The U.S. steel industry initially saw a boost following Trump’s original tariffs, with capacity usage climbing above 80% in 2019. However, prices have since fallen due to China’s continued dominance in global steel production. Some companies that benefited from the tariffs have struggled in recent years, including Magnitude 7 Metals, which was forced to idle a Missouri aluminum smelter in 2023.
Canada and Mexico Among Top Steel Suppliers
According to U.S. government and industry data, the largest sources of steel imports to the United States are Canada, Brazil, and Mexico, followed by South Korea and Vietnam. Canada is by far the leading provider of aluminum, accounting for 79% of U.S. aluminum imports in the first 11 months of 2024. Mexico also plays a key role in supplying aluminum scrap and alloys.
Quebec Premier François Legault voiced strong opposition to the potential tariffs, pointing to the United States’ heavy reliance on Canadian aluminum.
“The Trump administration is threatening to attack the aluminum and steel sectors—sectors where the United States depends largely (on others). Quebec exports 2.9 million tons of aluminum to them, that is, 60% of their needs. Do they prefer to get supplies from China?” Legault stated.
He also called for an early renegotiation of the free trade agreement with the United States, rather than waiting for the scheduled 2026 review.
“All this shows that we must begin to renegotiate our free trade agreement with the United States as soon as possible and not wait for the review planned for 2026. We must put an end to this uncertainty.”
Trump’s latest trade moves are likely to spark fresh tensions with key U.S. allies and could significantly impact global trade dynamics in the coming months.