Trump wants to "simplify" tariffs on steel and aluminum

"Today I am simplifying our tariffs on steel and aluminum," Trump said in the White House at the signing of the decrees. He also indicated that he was considering introducing additional tariffs on cars, pharmaceuticals and computer chips.

The two proclamations, which the US government headquarters later published, list that various exemptions for different countries will no longer apply from March 12. Instead, a uniform tariff rate of 25 percent is to apply. Trump said: "That's a great thing." This would make America rich again.

He is considering an exemption for Australia with regard to steel tariffs. Trump justified Australia's possible exemption from the tariffs with a US trade surplus with the country. "And the reason is that they buy a lot of airplanes. They're pretty far away and they need a lot of airplanes," said Trump.

Australia has important raw material

According to Australia's head of government Anthony Albanese, Trump had previously "agreed that an exemption would be considered in the interests of both our countries". In a telephone call with the US President, he had argued that Australia should be exempted from the impending tariffs on steel and aluminum, Albanese told the media on Tuesday (local time).

Australia only plays a minor role in the global steel export markets. However, the country has significant deposits of iron ore, an important raw material for steel production. Should Trump agree to an exemption for Australia, it would be one of the first countries to be subject to such a regulation.

USA is the second largest steel importer

The new US tariffs on steel will further complicate the situation on the steel market, which is strategically important for many industrial sectors. This has already been destabilized by overproduction in China and the stuttering blast furnaces in Europe.

According to the latest figures from the industry association World Steel, 1.89 billion tons of steel were produced worldwide in 2023. At 1.02 billion tons, global market leader China produced more than half, with the USA well behind at 81 million tons.

By contrast, the USA imported 26.4 million tons of this metal in 2023, making it the second-largest importer after the European Union.

Washington's preferred steel supplier is Canada. According to the US Department of Commerce, the USA imported 5.95 million tons from its northern neighbor in 2024. Brazil exported 4.08 million tons of steel to the USA, the EU 3.89 million tons, followed by Mexico and South Korea with 3.19 and 2.5 million tons respectively. China, on the other hand, only exported around 470,000 tons to the USA.

Switzerland is not listed separately in the US statistics. However, the USA is also an important market for the steel producers based here. For example, the ailing company Swiss Steel generated almost 10% of its turnover with customers in the USA in the first half of 2024.

EU wants to react

The EU Commission announced this morning that it would not take any countermeasures in response to "general announcements without details or written clarification" from Washington. It currently sees "no justification for imposing tariffs on its exports". However, Brussels will "react to protect the interests of European companies, workers and consumers from unjustified measures".

Trump had already announced new tariffs on steel and aluminum imports on Sunday. On the flight to the Super Bowl, he also said that he would announce "reciprocal tariffs". The USA would impose these import tariffs on products if another country were to impose tariffs on US goods.

In his first term of office until 2021, Trump also introduced additional levies on steel and aluminum. At the time, the EU responded with tariffs on selected US products, such as jeans, whisky and motorcycles.