Donald Trump does not stop and relaunches its battle commercial: from February 10th the United States will apply 25% rates on all imports of steel e aluminum, including Canada and Mexico, and new duties are expected in the coming days. “Every steel and every aluminum that comes into the United States will be taxed at 25%,” the US president declared aboard Air Force One on his way to the Super Bowl in New Orleans. Meanwhile, as announced last week, Chinese duties start today: Beijing will apply 10-15% tariffs on American goods worth 14 billion dollars, hitting liquefied natural gas, agricultural equipment and other flagship products.
The news immediately made the marketsIron ore, which is key to steel production, rose 0,1%, while aluminum futures rose 0,57% on the London Metal Exchange.
Reciprocal Tariffs, a Dig at Canada and the Controversial Plan for Gaza
It's not just about metals. Between Tuesday and Wednesday, Trump will announce the so-called "rates mutual,” or duties designed to hit countries that tax American goods. In a direct dig at Canada, Trump said: “It would do better as the 51st state in the United States,” lamenting losses of $200 billion in alleged American subsidies.
The President then signed a proclamation renaming February 9 as “the day of Gulf of America,” underlining the strategic importance of the Gulf of Mexico. The whole thing happened aboard Air Force One, while the pilot pointed out to passengers that they were flying over that very region, recently renamed by Trump.
Reflecting on the start of this term, Trump said: “We have to come together, but there’s only one thing that can do that: success. Success unites the country.” He also drew a comparison with his first term, noting that he lacked the support needed to carry out his policies. In addition to tariffs, Trump revealed an ambitious plan for “buy and control Gaza” to facilitate reconstruction, with the idea of ceding some areas to Middle Eastern countries. A controversial plan that, if confirmed, risks increasing geopolitical tensions in the region.
US Dependent on Metal Imports: A Calculated Risk?
Behind Trump's strategy is a reality that is hard to ignore: the United States is largely dependent on cheap imports of metals. In 2023, more than 80% of the aluminum demand came from countries such as Canada, Mexico and the United Arab Emirates. Imported steel, although a smaller share, is also crucial for sectors such as aerospace, automotive and energy.
Meanwhile, the South Korea of the South, a major steel exporter to the United States, is seeking to diversify markets to mitigate the impact of the tariffs, although the American market remains crucial for 70% of its steel exports compared to pre-2018 levels.
