Wrapup 2: Trump to announce 25% steel and aluminium tariffs in latest trade salvo

HYUNDAI STEEL

10/02/2025 12:37

(Updates with start of U.S. trading)

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      Steel and aluminium tariffs set to hit imports
    

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      Shares of U.S. steel and aluminum makers jump
    

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      Importers to pay 25% on top of existing tariffs
    

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      Pledges add to multi-front trade upheaval
    

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      Trump also promises broader reciprocal tariffs for
Tues/Wed 
    

  
    By Jeff Mason
       ABOARD AIR FORCE ONE/SEOUL/FRANKFURT, Feb 10 (Reuters) -
    President 
    Donald Trump
     is expected to introduce new 
    25% tariffs
     on Monday on all steel and aluminium imports into the U.S.,
on top of existing metals duties, in another major escalation of
his shake-up of trade policy.
  
    As the risk mounts of a multi-front trade war, the European
Union flagged it may retaliate and Trump promised further
announcements on Tuesday or Wednesday of broader reciprocal
tariffs to match those of countries importing U.S. goods.
     Shares in U.S. steel and aluminium makers jumped. Nucor
 NUE.N  and U.S. Steel  X.N  rose between 4% and 7% in morning
trade, while Cleveland-Cliffs  CLF.N  shares jumped 15%. Century
Aluminum  CENX.O  added 13% and Alcoa  AA.N  4%. 
        Shares in European and Asian steelmakers fell. 
  
    Speaking to reporters on Air Force One on his way to
Sunday's NFL Super Bowl in New Orleans, Trump said he would
announce the metals tariffs on Monday and the reciprocal tariffs
soon afterwards, adding "if they charge us, we charge them."
    The largest sources of U.S. steel imports are Brazil, Canada
and Mexico, followed by South Korea and Vietnam, according to
government and American Iron and Steel Institute data. 
    Meanwhile, Canada, whose extensive hydropower resources aid
its metal production, accounted for 79% of U.S. primary
aluminium imports in the first 11 months of 2024.
    During his first four-year term from 2017, Trump imposed
tariffs of 25% on steel and 10% on aluminium.
    But he later granted several countries exemptions, including
Australia, Brazil, Canada and Mexico, and his successor Joe
Biden later negotiated duty-free quota deals with Britain, Japan
and the EU.
    With more demands for exemption and negotiation in prospect,
some said Trump's action would first of all damage the U.S.
economy by raising the cost of the raw materials it depends on.
    "Canadian steel and aluminum support key industries in the
U.S. from defence, shipbuilding and auto," Canadian Innovation
Minister Francois-Philippe Champagne posted on X.  
    "We will continue to stand up for Canada, our workers, and
our industries."
    Australia, also a strategic U.S. ally, has been making
representations on aluminium and steel for months.
    "Australian steel and aluminium are creating thousands of
good paying American jobs, and are key for our shared defence
interests," Trade Minister Don Farrell said.
    
    EU AND SOUTH KOREA WEIGH RESPONSES TO TRUMP TARIFFS
    In South Korea, the Industry Ministry called in steelmakers
to discuss how to minimise the impact of tariffs.
    Hyundai Steel  004020.KS  shares dipped by as much as 2.9%
amid a broader decline among South Korean steelmakers.
    European steelmakers account for about 15% of imports into
the United States, and shares in ArcelorMittal  MT.LU ,  MT.AS 
and Voestalpine  VOES.VI  slipped between 1.3% and 2.5%.
Germany's Thyssenkrupp  TKAG.DE  and Salzgitter  SZGG.DE  were
little changed.
    The European Commission said it saw no justification for the
imposition of tariffs: "We will react to protect the interests
of European businesses, workers and consumers."
    It said Commission President Ursula von der Leyen would meet
U.S. Vice President JD Vance in Paris on Tuesday during an AI
summit. The German government said it was "working towards
ensuring that these measures (tariff increases) do not
materialise"./
    Trump also said that, while the U.S. government would allow
Japan's Nippon Steel  5401.T  to invest in U.S. Steel  X.N , it
would not allow a majority stake.
    "Tariffs are going to make (U.S. Steel) very successful
again," Trump said.
    Nippon Steel declined to comment, but Japan's Chief Cabinet
Secretary Yoshimasa Hayashi said the company was considering a
bold change in plan. 
    U.S. steel mill capacity usage jumped above 80% in 2019
after Trump's initial tariffs, but has since fallen as China's
global dominance - unaffected by its exclusion by tariffs from
the U.S. market - has pushed down prices.
    A Missouri aluminium smelter revived by the previous tariffs
was idled last year by Magnitude 7 Metals.
    Kevin Dempsey, head of the American Iron and Steel
Institute, said it would work with Trump "to implement a robust
and reinvigorated trade agenda to address the many foreign
market-distorting policies and practices that create an unlevel
playing field for American steelmakers."
    
    TRUMP PROMISES RECIPROCAL TARIFF ANNOUNCEMENT SHORTLY
    Trump also promised detailed information on Tuesday or
Wednesday on his reciprocal tariff plan.
    The president has long complained about the EU's 10% tariff
on auto imports, much higher than the U.S. car rate of 2.5%.
    However the U.S. applies a 25% tariff on pickup trucks, a
vital source of profit for Detroit automakers General Motors
 GM.N , Ford  F.N  and Stellantis'  STLAM.MI  U.S. operations.
    Overall, the U.S. trade-weighted average tariff rate is
about 2.2%, according to World Trade Organization data, compared
to 12% for India, 6.7% for Brazil, 5.1% for Vietnam and 2.7% for
the EU.
    Chris Swonger, CEO of the Distilled Spirits Council of the
United States, said Trump’s new steel tariffs could lead to the
EU imposing retaliatory duties on American whiskey.
    “We are urging that the U.S. and EU move swiftly to find a
resolution. Our great American whiskey industry is at stake. A
50% tariff on America's native spirit will have a catastrophic
outcome for the 3,000 small distilleries across the United
States,” he said. 
    Trump had already threatened to impose tariffs of 25% on all
imports from America's two largest trading partners, Canada and
Mexico, saying they must do more to halt the flow of drugs and
migrants across the U.S. border.
    After some border security concessions, Trump paused the
tariffs until March 1. But he told Fox News that more measures
were needed.
    "Something has to happen, it's not sustainable," he said,
"and I'm changing it."

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
GRAPHIC-Average tariff rates of U.S. and its top 15 trading
partners    https://reut.rs/4gsk5cA
Reuters.com tariffs page    https://www.reuters.com/business/tariffs/
FACTBOX-All of Donald Trump's tariffs and threatened trade
actions     urn:newsml:reuters.com:*:nL1N3P103K
GRAPHIC-The markets left reeling from Trump's tariff threats   
 urn:newsml:reuters.com:*:nL8N3OW1OU
FACTBOX-Where does the U.S. get its steel and aluminum from?   
 urn:newsml:reuters.com:*:nL4N3P105R
Podcast - Trump's tariffs: What does the president want?    https://www.reuters.com/podcasts/trump-tariffs-2025-02-06/
Mexico and Canada accounted for almost 40% of US steel imports
last year    https://reut.rs/4jTfVNA
BREAKINGVIEWS-EU’s Trump plan requires carrots, sticks and vibes
    urn:newsml:reuters.com:*:nL8N3P10LP
Looming tariffs turned into a mad dash north for one US
manufacturer     urn:newsml:reuters.com:*:nL1N3OX0P2
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Jeff Mason and David Lawder; Writing by David
Lawder and Kevin Liffey; Additional reporting by Lidia Kelly in
Melbourne, David Ljunggren and Costas Pitas; Editing by Barbara
Lewis, Sharon Singleton and Nick Zieminski)
 ((David.Lawder@tr.com; +1 202 843 6288;))