Approximately a quarter of all the steel used in the US is imported, and data from the Census Office of that country show that the increase in taxes ordered by Trump on Tuesday will especially affect the closest commercial partners of the US: Canada and Mexico, which occupy the first and third place, respectively, in volume of shipments of that alloy.
Canada is even more exposed to aluminum levies, since it is, by far, the main exporter to the US, with a volume of approximately twice that of the 10 main exporters together. EU obtains approximately half of its aluminum from foreign sources.
Steel, aluminum exports and its manufactures in Mexico in 2024 were 16,078 million dollars, of which 81.73% went to the United States, according to the Base Financial Group.
He added that the exports of these products to the United States represented 2.13% of the total exports of Mexico.
“The increase in the steel, aluminum tariff and its manufactures has the potential to cause a drop in exports of these sectors of 4% in 2025,” he said.
Trump signed an executive proclamation on Tuesday that puts his surprise announcement last week that he would raise 25% to 50% tariffs on steel and aluminum imports that were in force since March.
“We started with 25 and, after analyzing the data in more detail, we realized that it was a great help, but it takes more. Therefore, the increase to 50 enters into force tomorrow,” said the economic advisor of the White House, Kevin Hasett, explaining the measure at a conference of the steel industry held on Tuesday in Washington.
The increase applies to all commercial partners except the United Kingdom, the only country that to date has reached a preliminary commercial agreement with the US during the 90 -day break in a broader series of tariffs imposed by Trump.
The barrier to the imports of steel and aluminum of the United Kingdom – which is not among the main exporters of any of these metals to the US – will remain at 25% up to at least July 9.
Lee: Trump raises steel and aluminum from 25 to 50%
The unexpected increase in levies shook the market of both metals this week, especially that of aluminum, whose surfaces have more than duplicated so far this year.
Given the scarce current capacity to increase US production, import volumes are likely to be affected unless price increases reduce demand.
Expiration date of the ‘best offer’
Wednesday is also when the White House would like its commercial partners to submit its agreements of agreements that could help them prevent the high tariffs of Trump’s “day of liberation” from entering into force in five weeks.
Administration officials have held active conversations with several countries since Trump announced a pause in these tariffs on April 9, but to date only the agreement with the United Kingdom has been completed. Even that agreement, which laid the foundations for the exemption of tariffs on metals, is rather a preliminary framework for future conversations.
Just a few weeks after the end of the process, Trump’s team is eager to specify more agreements.
Reuters reported on Monday that the United States Commercial Representative (USTR) was asking in a letter to the countries that enumerate their best proposals in a series of key areas, including tariff offers and installments for the purchase of American industrial and agricultural products and plans to remedy any non -tariff barrier.
Lee: Aluminum and steel prices in the US upload Trump tariff threat after new tariff
In turn, the letter promises responses “in a matter of days” with an indication of an “landing zone”, including tariff rates that countries are expected to have to assume after the expiration of a 90 -day break in tariffs on July 8.
The issue for most commercial partners is if they will maintain the current base rate of 10% in most exports to the US after that date, or a considerably higher in many cases.
The White House spokeswoman, Karoline Leavitt, confirmed the report on Tuesday by saying that the “USTR sent this letter to all our commercial partners only to give them a friendly reminder that the deadline is approaching.”
Other points requested by the Trump Administration include any commitment to digital trade and economic security, together with specific commitments of each country, according to the document.
With Reuters information
Do you like to inform yourself for Google News? Follow our showcase to have the best stories
