7:46 pm - February 24, 2025
On March 4, 2024, former President Donald Trump signed two significant proclamations that imposed a 25% tariff on all steel and aluminum imports entering the United States. These proclamations, while not carrying the full legal weight of executive orders, marked a bold move by the Trump administration to reshape America’s trade policies and prioritize domestic manufacturing. The tariffs were framed as a strategic step toward resetting global trade dynamics, with Trump declaring, “This is a big deal… the beginning of making America rich again.” The move, however, sparked intense debate, both domestically and internationally, as it reflects a broader philosophy of economic nationalism and the belief that the U.S. has been unfairly treated by both allies and competitors.
The proclamations effectively removed any exceptions or exemptions that had been in place since Trump first introduced steel tariffs in 2018. This meant that all steel imports, regardless of their country of origin, would now be subject to the 25% duty. Similarly, aluminum imports would face a much steeper tariff than the 10% duty imposed during Trump’s first term. The administration argued that these measures would protect American industries and encourage domestic production, countering what Trump described as being “pummeled by both friend and foe alike.” However, outside economic analyses painted a more complex picture, suggesting that the tariffs could ultimately harm U.S. manufacturers by increasing their production costs and leading to potential job losses, particularly in industries that rely heavily on imported steel and aluminum.
The tariffs were part of an aggressive push by the Trump administration to redefine global trade relationships. Critics, including Canada, the largest exporter of steel to the U.S., condemned the move. Candace Laing, CEO of the Canadian Chamber of Commerce, warned that the tariffs would destabilize the global economy and create “perpetual uncertainty.” Economic experts, such as Sky News Economics and Data Editor Ed Conway, pointed out that tariffs, while intended to bring production back to the U.S., would inevitably lead to higher prices for consumers. Conway noted that tariffs are essentially taxes on imported goods, which would increase the cost of manufacturing everything from aircraft wings to steel rivets. This, in turn, could lead to inflation and potentially hurt the very industries Trump sought to protect.
The tariffs were not an isolated move but part of a larger trade war that had been escalating for years. Just days before the steel and aluminum tariffs were announced, the U.S. imposed a 10% tariff on all goods imported from China. In retaliation, China implemented its own tariffs on select American products, including crude oil, agricultural machinery, and large-displacement vehicles. Meanwhile, plans to impose 25% tariffs on Mexico and Canada were paused after the two countries reached agreements with the U.S. on border security issues. Mexico, for instance, agreed to deploy 10,000 National Guard troops to its border with the U.S., specifically targeting the flow of fentanyl and illegal migration. Canada, under Prime Minister Justin Trudeau, also increased its border security efforts, appointing a “fentanyl czar” and intensifying surveillance.
The tariffs on steel and aluminum also highlighted the broader collateral damage of trade wars. Mexico and Canada, two of America’s closest trading partners, were compelled to take unprecedented measures in response to the U.S. tariffs. Mexico’s deployment of National Guard troops and Canada’s appointment of a “fentanyl czar” underscored the interconnected nature of trade and security. While Trump framed the tariffs as a way to strengthen American manufacturing and reduce dependence on foreign goods, critics argued that the move would have far-reaching consequences, including inflation, supply chain disruptions, and strained international relations.
Ultimately, Trump’s tariffs on steel and aluminum reflected a deeper ideological shift in U.S. trade policy, one that prioritizes national self-reliance and economic sovereignty over global cooperation. While the long-term impact of these tariffs remains uncertain, the immediate effects were clear: heightened tensions with key trading partners, increased costs for domestic manufacturers, and a growing sense of unpredictability in the global economy. As Conway observed, while nations have historically defied economic logic to achieve strategic goals, such actions rarely come without significant trade-offs. In this case, the tariffs serve as a stark reminder that resetting global trade is a complex and contentious endeavor, with no guarantee of success.