(Click on image to enlarge)

Census Department chart on Steel and aluminum via Bloomberg.

Aluminum and Steel Imports

• The US relies on aluminum imports from countries including Canada, the United Arab Emirates and Mexico, to meet the vast majority of demand — net imports added up to more than 80% in 2023, according to Morgan Stanley. 
• Steel imports account for a smaller portion of overall consumption, but are vital for sectors leaning on specialty grades, including aerospace, auto manufacturing and energy, from wind developers to oil drillers.

50 Percent Tariffs on Canada Steel and Aluminum

Despite desperate please for carve-outs, Trump Says He Will Raise Canada Steel and Aluminum Tariffs to 50 Percent

President Trump upped the ante on his steel and aluminum tariffs on Tuesday, saying in an online post that he would increase the planned 25% rate on Canada’s metals to 50% in response to its retaliation to his previous trade moves. 

Trump said that Canada’s recent move to place an export tax on electricity flowing to the U.S., along with longstanding dairy industry trade disputes, would mean that tariffs on its metals would be higher. Canada is the U.S.’s top supplier of foreign steel and aluminum.

“We will not back down. We will be relentless,” Doug Ford, the premier of Canada’s most-populous province, Ontario, told MSNBC on Tuesday. Ford on Monday imposed a 25% surcharge on electricity shipped from the province to New York, Michigan and Minnesota, affecting 1.5 million households and businesses.

Later, in an interview on CNBC, Ford said he would consider cutting the electricity his province supplies to the U.S. if the Trump administration continues to escalate a trade war.

“Is it a tool in our tool kit? 100%,” Ford said. “And as he continues to hurt Canadian families, Ontario families, I won’t hesitate to do that. That’s the last thing I want to do. I apologize to the American people. There’s one person to be blamed, and that’s President Trump.”

Automakers and metals companies like Alcoa with footprints in multiple countries have also sought carve-outs or delays from the Trump administration, according to people with knowledge of the requests. But the administration has been steadfast that it will not allow for any carve-outs this time. 

Last week, CEOs from eight U.S. steel companies, including U.S. Steel and Cleveland Cliffs, sent a letter to Trump urging him “to resist any requests for exceptions or exclusions and to continue standing strong on behalf of American steel.”

Union vs Union

The steelmakers want these tariffs the automakers and anyone with an ounce of common sense doesn’t.

I discussed the setup in Trump Claims Tariffs Will Make U.S. Steel Great Again, He’s Very Wrong

Cleveland Cliffs Earnings Statement: “We like higher prices. That’s the best thing for our companies, the best thing for our employees, the best thing for our shareholders. So, that’s why we push prices up. We go until we can’t go no more.”

Regarding the merger of US Steel with Nippon, automakers wrote to Congress, complaining that the combined company would control 65-90% of automotive steel.

It’s a steel monopoly that is the national security risk, not the Nippon merger.

Trump Temper Tantrum TTT^tm

If you are a stock market bear who does not care about lasting damage, then you may be amused by this Trump Temper Tantrum TTT^tm on Truth Social.

Why would our Country allow another Country to supply us with electricity, even for a small area? Who made these decisions, and why? And can you imagine Canada stooping so low as to use ELECTRICITY, that so affects the life of innocent people, as a bargaining chip and threat? They will pay a financial price for this so big that it will be read about in History Books for many years to come!

What a Proverbial Hoot!

Speaking about impacting the lives of innocent people, what the hell is Trump doing?

In case you missed it, please see How One Small Business Owner Is Coping With Trump’s Tariffs

Meet Daniel Rogge, CEO of Tormach, a machine-tool maker.

Tormach Coping Synopsis

• Reducing spending on marketing by 25%
• Reduce 401(k) retirement savings plan match
• Eliminating work-from-home stipends and anniversary bonuses
• Shift focus to foreign sales to take advantage of Mexico’sstability and free trade

Multiply that by tens of thousands of small businesses.

Fifty-four percent of small businesses polled said that tariffs would negatively affect their companies, while just 11 percent said they would benefit.

Escalating Trade Wars

Perhaps Canada should shut off all aluminum exports to the US. Wouldn’t that be a hoot?

I am not in favor of escalating tariffs, because nobody wins trade wars. But the fact is countries do respond.

Trump started this mess despite having a good trade deal in place called USMCA.

Related Posts

February 2, 2025: What’s the Impact on CPI Inflation and GDP of Trump’s Global Trade War?

Canada and Mexico plan precision responses to Trump’s tariffs. What about prices and GDP?

One reader commented “Roughly 75-80% of the things Canada and Mexico make come to the USA. Only 24-28% of the things we import come from Canada/Mexico. Can you say leverage?”

I responded “We lose 25% and they lose 75%. Fools label this winning”.

February 11, 2025: Trump’s Steel Tariffs Now Will Work as Good as the First Time

Q: How’s that? A: Very poorly.

On some products, American businesses pay 40 percent more for similar steel compared to their European counterparts — an unsustainable situation for any U.S. employer.

February 17, 2025: Five Republican Senators Caution Trump about Pain from Tariffs

Senators warn Trump, but Trump won’t listen.

February 26, 2025: Trump’s Tariffs Will Increase the Cost of a Pickup Truck by $8,000.

Trump says it’s full speed ahead with tariffs. It will cost US jobs.

The reinstitution of aluminum and steel tariffs across the board is in direct violation of Trump’s loudly bragged USMCA “Best Trade Deal in History”.

The US already has the among the highest prices for steel in the world. The last thing the US needs is higher prices for cars that are already hugely unaffordable.

Even the autoworkers’ unions see that.

Cheese Was a “Key Achievement” of Trump’s USMCA Trade Agreement

On March 9, I commented Cheese Was a “Key Achievement” of Trump’s USMCA Trade Agreement

Trump is complaining about Canada’s cheese tariffs. In 2018, he was bragging about cheese.

Trump has proven ability to repeatedly make the same mistakes, needlessly taunt allies, and violate his own treaties.

Expect more inappropriate and destructive TTTs because they are coming.

As I said on March 4, A Global Trade War Has Started – Global Recession Will Follow

Welcome to the global recession.

More By This Author: