Trump signs executive orders on steel, aluminum tariffs
US Commerce Secretary nominee Howard Lutnick (right) speaks as US President Donald Trump signs a series of executive orders including 25 percent tariffs on steel and aluminum, a pardon for former Illinois Gov. Rod Blagojevich, an order relating to the Foreign Corrupt Practices Act, and an order for the federal government to stop using paper straws and begin using plastic straws in the Oval Office at the White House on February 10, 2025, in Washington, DC.
US President Donald Trump on Monday made good on a promise to slap 25 percent tariffs on steel and aluminum imports, stepping up a long-promised trade war despite warnings from Europe and China.
The Republican president had unveiled the policy on Sunday aboard Air Force One while flying to the Super Bowl in Louisiana.
Before he signed executive orders imposing the measures, global stock markets rose as traders with "tariff fatigue" appeared to shrug off Trump's plans.
"Today I'm simplifying our tariffs on steel and aluminum," Trump said in the Oval Office. "It's 25 percent without exceptions or exemptions."
He also signaled that he would look at imposing additional tariffs on automobiles, pharmaceuticals and computer chips.
Canada and Mexico — which Trump has already threatened with tariffs — are the biggest steel importers to the United States, according to US trade data. Brazil and South Korea are also major steel providers.
"President Trump has made it clear that an important part of an America First Golden Age is steel production," National Economic Council Director Kevin Hassett told CNBC.
The US leader said he was considering an exemption for Australia from the steel tariffs, confirming comments made by Australian Prime Minister Anthony Albanese.
"We have a (trade) surplus to Australia, one of the few. And the reason is they buy a lot of airplanes. They are rather far away and need lots of airplanes," he said.
Trump has also promised an announcement on Tuesday or Wednesday on broader "reciprocal tariffs" to match the levies other governments charge on US products.
He imposed sweeping tariffs during his 2017-2021 presidency to protect US industries, which he believed faced unfair competition from Asian and European countries.
'Losers'
Canadian steelmakers warned of "massive" disruption, while the European Commission said it would "react to protect the interests of European businesses, workers and consumers from unjustified measures."
French President Emmanuel Macron vowed in an interview aired Sunday to go head-to-head with Trump over his wider tariff threats against the European Union.
German Economy Minister Robert Habeck said a tariff conflict "only has losers."
Around 25 percent of European steel exports go to the United States, according to consultancy Roland Berger.
Britain's steel industry body called the tariff plan a "devastating blow."
Wall Street's main indices finished up Monday despite the tariff threat. London and Frankfurt set fresh records, while Hong Kong and Shanghai stocks also rose.
"The fact that global equity indices are higher at the start of the week could be a sign of tariff fatigue," said Kathleen Brooks, research director at trading group XTB.
