President Trump Raises 25% Tariff on all Aluminum and Steel Imports

On February 11, 2025, President Donald Trump announced a broad expansion of tariffs on steel and aluminum imports, imposing a 25% duty on all such imports into the United States. These tariffs, set to take effect on March 12, 2025, mark a significant escalation in trade protectionism and remove country-specific exemptions and quota agreements that had been in place since the Trump administration’s initial Section 232 tariffs in 2018.

How Do These Tariffs Differ from the Previous Ones?

The original 2018 Section 232 tariffs, which imposed 25% duties on steel and 10% on aluminum, were designed to protect domestic metal production under the justification of national security. However, country-specific exemptions were eventually negotiated, allowing major trade partners like Canada, Mexico, Brazil, and South Korea to export steel and aluminum under quotas or tariff exclusions.

The new tariffs eliminate those exemptions, meaning all imported steel and aluminum—regardless of origin—will be subject to the 25% duty. Moreover, the tariffs will likely apply to at least some finished products, including metal extrusions and slabs. This change broadens the scope of affected businesses and may lead to higher costs across industries reliant on these materials, such as manufacturing, construction, and automotive production.

Trade Implications and Business Considerations

The European Union has already signaled potential retaliatory tariffs on key U.S. exports, including bourbon, jeans, peanut butter, and motorcycles. This raises the possibility of an intensified trade dispute that could further impact supply chains and pricing for American companies.

For U.S. businesses, these tariffs may increase raw material costs, disrupt existing supply agreements, and complicate compliance with customs regulations. Companies that depend on imported steel and aluminum should consider:

• Reevaluating supply chain strategies to mitigate increased costs
• Reviewing contracts to clarify contractual responsibility for duties, tariffs, and taxes
• Monitoring trade policy developments for potential negotiations or retaliatory actions

Next Steps

With these tariffs set to take effect in less than a month, companies should act quickly to assess the potential impact on their operations. Our Supply Chain & Automotive team is available to assist with tariff mitigation strategies, compliance planning, and supply chain adjustments and negotiations.

For more information on how these changes may affect your business, contact Christopher J. Schneider or Marcus Hoekstra.