USA reinstates 25% tariff on steel: a blow to Canada, the EU, Mexico, and Ukraine
Starting March 12, 2025, the United States is reinstating a 25% tariff on steel imports from Canada, the EU, Mexico, Ukraine, and other countries. The decision is linked to national security concerns.
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U.S. President Donald Trump signed an executive order reinstating the 25% customs tariff on imported steel products from countries that were previously exempt. This information was published on the White House website.
The new tariffs will take effect on March 12, 2025, and will impact Canada, the European Union, Mexico, Ukraine, Japan, South Korea, Brazil, and Australia.
The decision is based on a report by the U.S. Department of Commerce, which states that the increasing volume of steel imports poses a threat to national security.
According to the report, shipments from these countries have significantly increased, undermining the competitiveness of American manufacturers. Specifically, steel imports from Canada rose by 18%, while imports from Mexico surged by 1,678% in certain product categories.
Special attention was given to Ukraine. The Biden administration had previously exempted Ukrainian steel from tariffs to support the country’s economy amid the ongoing war.
However, according to Washington, these exemptions benefited the EU more than Ukraine, as European countries began exporting processed Ukrainian semi-finished products without paying tariffs.
In addition to reinstating the tariffs, the U.S. is eliminating the exemption mechanism that allowed certain companies to apply for tariff waivers if a similar product was not sufficiently produced domestically. The Department of Commerce will no longer review such requests.
The reinstatement of tariffs is expected to provoke a strong reaction from affected countries and could further strain trade relations between the U.S. and its allies.
The European Union and Canada are expected to initiate negotiations or file complaints with the World Trade Organization.
Earlier, it was reported that the U.S. imposed a 25% tariff on steel and aluminum imports, which threatens to escalate trade tensions with Canada, Mexico, and the EU.
It was also revealed that the U.S. Postal Service suspended deliveries from China following the removal of duty-free imports for cheap goods due to new tariffs.