Trump Hits Steel, Aluminum with 25 Percent Tariffs

AIR FORCE ONE, MONDAY - The President of the United States, Donald Trump, announced his plan to impose import tariffs on steel and aluminum. According to him, the goal is for the mining and metal processing industries that have been operating abroad to relocate their production to the US.

Trump made the announcement at a press conference aboard the presidential plane Air Force One, Sunday (2/9/2025) local time or Monday (2/10/2025) Indonesian time. He was on his way to New Orleans in the state of Louisiana to watch the American national football league match, the Super Bowl.

According to Trump, a more detailed announcement will be published on Monday local time or Tuesday (11/2) Indonesian time. The 25 percent tariffs on steel and aluminum were also imposed on metals from Canada and Mexico, even though both countries are in the process of bilateral negotiations with the US.

"Basically, all steel and aluminum coming into the U.S. is going to be subject to a 25 percent tariff," Trump said.

According to 2019 US Department of Commerce data, Uncle Sam's country is the world's largest steel importer. The US buys steel from 80 countries and territories around the world. Canada and Mexico are the two largest sources of US steel imports, followed by South Korea, Brazil, Japan, Germany, Italy, Vietnam, and Russia.

During Trump's first term (2017-2021), he also imposed a 25 percent tariff on steel and a 10 percent tariff on aluminum. Trump then granted duty-free quotas to several countries after a series of negotiations.

Last week, Trump attempted to hit Canada and Mexico with a 25 percent tariff. However, both countries struck back. Canada launched a boycott of U.S. products, particularly those made in states that supported Trump in the November 2024 presidential election.

As a result, due to the backlash, Trump suspended the implementation of tariffs for the next 30 years. He opened the space for negotiations with Canada and Mexico. Trump's desire is for the two neighboring countries to tighten surveillance at the borders with the US to prevent the smuggling of illegal immigrants and fentanyl drugs.

Trump also imposed a 60 percent import tariff on goods from China, an increase of 10 percent from the existing tariff. However, Trump did not impose tariffs on cheap imported goods purchased by US residents from Chinese marketplaces, Shein and Temu.

China, which was subjected to a total import tariff of 60 percent by Trump, retaliated by restricting the export of 25 types of rare earth metals to the US. These metals are crucial for manufacturing electronic equipment needed by the military.

A tariff of 15 percent is imposed on imports of coal and liquefied natural gas from the US. A 10 percent tariff is applied to crude oil, agricultural machinery, and large-engine cars. China is also in the process of filing a lawsuit against the US at the World Trade Organization (WTO).

In addition, Trump said he would announce retaliatory tariffs. This is aimed at countries that set high tariffs on imported goods from the US. An example is the European Union which has so far applied a 10 percent tariff on imported cars from the US. In fact, in the US, European cars are only subject to a 2.5 percent import duty.

There has been no public opinion poll on the tariffs, but the Cato Institute and YouGov conducted a survey in August 2024 to gauge public reaction to Trump's campaign promise to increase tariffs.

Seventy-five percent of respondents expressed concern that tariff increases would lead to higher prices of goods. In addition, 63 percent of respondents want the US to increase trade with other countries.

Respondents believe that international trade gives them a wider choice of consumer products. Global trade also encourages innovation, technology transfer, and the development of new ideas.

Marc L Bush, a business expert from Georgetown University, wrote in an opinion column in The Hill on February 6, 2025, regarding Trump's intention to impose tariffs on strategic metals, including steel, aluminum, and copper.

If the intention is to boost domestic production in the US, many metal processing plants have already closed. The factories that are operating are also not capable of meeting US needs. There must be investment in upgrading the factories.

There are also regulatory issues that discourage investors from investing in the US. The system of division of authority between the federal and state governments makes it very bureaucratic to set up a factory.

The S&P Globalfirm in 2024 released data that the mining lead time in the US is relatively long. Lead time is the time it takes from the idea of a product being initiated until the product reaches the market. In the US, the lead time is 29 years.

That means the US is second from the bottom for lead time. The bottom position is occupied by Gambia, which is 34 years. Australia, Turkey, China, and Chile have lead times under 25 years. In fact, Indonesia is above the US in terms of lead time, although it is behind Australia. (AP/Reuters)