President Donald Trump’s tariffs on the imports of metal and aluminium by the US are sending shockwaves by way of world markets and escalating tensions with key buying and selling companions, together with Canada, Mexico and the European Union.
Some international locations are preventing again with retaliatory tariffs, others are searching for exemptions, and some try to barter their method out of the 25 % tariffs.
So, who’s escalating the commerce warfare, who’s attempting to keep away from it, and what does this imply for the industries that depend on these metals?
Who provides metal and aluminium to the US?
Canada, Brazil, and Mexico are the highest three suppliers of metal to the US, collectively accounting for about 49 % of its imports between March 2024 and January 2025, in accordance with the Worldwide Commerce Administration. The remaining main suppliers are South Korea, Vietnam, Japan, Germany, Taiwan, the Netherlands, and China, which collectively make up 30 % of US metal imports.
Here’s a breakdown:
- Canada – 16 %
- Brazil – 14 %
- Mexico – 9 %
- South Korea – 8 %
- China – 2 %
For aluminium, the largest suppliers are Canada, the United Arab Emirates, Russia and Mexico. Canada is the dominant provider, chargeable for practically 40 % of US aluminium imports, adopted by the UAE, Russia and Mexico.
The tariff warfare can have a widespread impact on producers and shoppers within the US as metal and aluminium are essential within the making of residence home equipment, automobiles, planes, telephones and buildings, amongst others.
Metal is a spine materials for building, manufacturing, transport, and power, with the development sector utilizing one-third of all metal imports. It can push up prices for infrastructure initiatives, together with airports, faculties and roads.
Aluminium, being light-weight and corrosion-resistant, is crucial for the automotive and aerospace industries, in addition to meals and beverage packaging.
The US is especially depending on aluminium imports, with roughly half of the metallic used within the nation coming from international sources.
The US import of metal and aluminium final yr was $31bn and $27bn, respectively, in accordance with the US Division of Commerce information.
Vina Nadjibulla, vp of analysis and technique on the Asia Pacific Basis of Canada, mentioned the tariffs are particularly damaging as a result of there may be “little financial or real nationwide safety rationale for them”.
“The US can’t realistically onshore sufficient of those commodities, so the duties primarily create financial ache for American shoppers and key buying and selling companions,” Nadjibulla informed Al Jazeera.
They as a substitute introduce a degree of “unpredictability and volatility we haven’t seen in a long time”.
By undermining established commerce norms, the US “successfully encourages different nations to reply in variety, with devastating affect for the inventory markets and investor and client confidence throughout North America and past”, Nadjibulla mentioned.
How are international locations responding?
Canada
The largest metal and aluminium provider to the US has taken a robust stance towards the tariffs. Prime Minister Justin Trudeau has referred to as the tariffs “unjustifiable” and a “dumb factor to do”.
Canada introduced 25 % retaliatory tariffs on $20.6bn value of US items, together with $8.8bn on metal and $2bn in aluminium imports. It has additionally imposed an extra tariff of practically $10bn on US items corresponding to computer systems and servers, show screens, water heaters and sports activities gear, amongst others.
These countermeasures take impact on Thursday.
“We’re going to arise for our staff, and we’re going to be sure the American individuals perceive that their management’s choices have penalties,” Trudeau mentioned earlier this week.
Mark Carney, who will succeed Trudeau as prime minister, has pledged to take care of the tariffs till the US commits to truthful commerce practices. He mentioned he’s keen to take “a way more complete method for commerce”.
“We firmly imagine that in a world fraught with geopolitical and financial uncertainties, it isn’t in our widespread curiosity to burden our economies with tariffs,” he mentioned on Wednesday.
The most recent tariffs are along with the 25 % counter-tariffs on $20.8bn of US imports, imposed on March 4 in retaliation to the earlier Trump levy that has since been delayed by a month.
European Union
The EU has additionally introduced retaliatory measures focusing on greater than $28bn value of US items corresponding to bikes, peanut butter, and denims, amongst others. These measures will roll out in two phases:
- Section 1 (April 1) – Reinstating beforehand suspended tariffs on $8.7bn value of US merchandise, together with metal, aluminium, bourbon, and bikes. The counter levies, which have been imposed between 2018 and 2020 throughout Trump’s first time period, have been suspended beneath the Biden administration.
- Section 2 (mid-April) – Introducing new tariffs on an extra $19.6bn value of US exports, corresponding to poultry, dairy merchandise, fruits, and cereals.
European Fee President Ursula von der Leyen has warned that these tariffs will improve costs and threaten jobs on each side of the Atlantic.
“We deeply remorse this measure. Tariffs are taxes. They’re unhealthy for enterprise and even worse for shoppers,” she mentioned, including that the EU “will at all times stay open to negotiation”.
Mexico
Mexico’s response stays unclear. President Claudia Sheinbaum has indicated that any retaliatory tariffs could be carried out provided that negotiations fail. Nonetheless, she has already struck a brief waiver cope with Trump, securing an exemption till April 2 for Mexican imports beneath the US-Mexico-Canada Settlement (USMCA) commerce settlement signed beneath Trump’s first time period.
Nonetheless, analysts say items that don’t adjust to the USMCA may nonetheless entice the brand new 25 % tariffs.
This comes after Mexico and Canada negotiated a one-month delay within the tariffs, throughout which each international locations agreed to spice up border safety measures. Trump has adopted by way of along with his marketing campaign promise to impose tariffs on Mexico till it stopped immigration and drug trafficking by way of its borders.
Brazil
Regardless of being one of many hardest-hit nations, Brazil has chosen diplomacy over retaliation. Brazilian officers are participating in talks with Washington in hopes of securing an exemption.
The federal government led by left-wing President Luiz Inacio Lula da Silva issued an announcement regretting the “unjustifiable” transfer by the US.
“President Lula informed us to stay calm, noting that previously we’ve got negotiated beneath circumstances that have been much more unfavourable than the present ones,” Finance Minister Fernando Haddad informed reporters on Wednesday.
South Korea
Trump has accused South Korea of benefiting from the US, including that Seoul’s common tariff is 4 instances larger, with out offering proof. The commerce between the 2 shut allies is sort of tariff-free because of a free commerce settlement.
“And we give a lot assist militarily and in so many different methods to South Korea. However that’s what occurs,” Trump mentioned throughout his tackle to the US Congress earlier this month.
He additionally promised to scrap the CHIPS and Science Act, beneath which a number of Korean firms, together with Samsung Electronics, obtain US help.
South Korea has opted for negotiation somewhat than confrontation. It has additionally activated a “full emergency response mode” to guard native industries.
On Tuesday, South Korea’s performing President Choi Sang-mok mentioned Trump’s “America First” coverage had began focusing on his nation.
South Korean officers have actively sought dialogue with their US counterparts to barter potential exemptions and tackle mutual considerations. Commerce Minister Cheong In-kyo is scheduled to go to Washington, DC, on March 13-14, aiming to debate reciprocal tariffs and funding alternatives.
The go to seeks to affect the Trump administration’s commerce coverage report and to current South Korea’s stance on tariffs.
China
Beijing is just not a number one metal provider to the US. Nonetheless, it has taken the tariffs as a direct financial assault and responded aggressively.
Mao Ning, spokesperson on the Chinese language Ministry of Overseas Affairs, informed reporters the transfer was in violation of World Commerce Group guidelines, and that China, the world’s largest metal producer and the second-largest financial system, will take all needed measures to safeguard its rights and pursuits.
“Nobody wins in a commerce warfare or a tariff warfare,” the spokesperson mentioned.
China has already slapped tariffs on the US in retaliation to the 20 % blanket tariff imposed by Trump.
How will the tariff warfare have an effect on US ties with its allies?
Australia, one other key US ally which has been affected by Trump’s tariffs, mentioned it will not retaliate. Prime Minister Anthony Albanese referred to as the tariff “completely unjustified”, however dominated out reciprocal tariffs as it will have an effect on Australian shoppers.
Canberra had managed to get an exemption from metal and aluminium tariffs beneath Trump’s first time period.
In accordance with Nadjibulla, these tariffs paint a picture that the US is turning into “an unreliable companion for its closest allies”.
She mentioned international locations corresponding to Canada, Australia, and South Korea “will look to minimise their vulnerabilities” and pursue methods like diversifying commerce companions.
“When giant economies have interaction in tit-for-tat tariff escalations, the chance of a worldwide commerce slowdown looms bigger,” she mentioned. “These measures don’t simply damage the near-term backside line – they threaten the complete framework of open commerce that has underpinned a lot of the world’s financial development and stability.”
