President Donald Trump’s tariffs on the US imports of steel and aluminum have been escalating tensions through global markets with major trading partners, including Canada, Mexico and the European Union.
Some countries are fighting back with retaliatory tariffs, others are seeking exemptions, while some are trying to get out of the 25% tariff.
So who is escalating the trade war, who is trying to avoid it, and what does this mean for industries that rely on these metals?
Who supplies steel and aluminum to the US?
According to the International Trade Agency, Canada, Brazil and Mexico are the top three US steel suppliers, collectively accounting for around 49% of imports between March 2024 and January 2025. The remaining major suppliers are South Korea, Vietnam, Japan, Germany, Taiwan, Netherlands, and China, which together account for 30% of US steel imports.
Here’s the fault:
Canada – 16% Brazil – 14% Mexico – 9% Korea – 8% China – 2%
For aluminum, the largest suppliers are Canada, the United Arab Emirates, Russia and Mexico. Canada is the dominant supplier, responsible for almost 40% of US aluminum imports, followed by the UAE, Russia and Mexico.
The tariff war has a widespread impact on US manufacturers and consumers as steel and aluminum are important in building appliances, cars, planes, phones, buildings, and more.
Steel is a backbone material for construction, manufacturing, transportation and energy, and the construction sector uses one third of all steel imports. It boosts the costs of infrastructure projects, such as airports, schools, and roads.
Lightweight and corrosion resistant, aluminum is essential for the automotive and aerospace industry, and for food and beverage packaging.
The United States relies specifically on imports of aluminum, with about half of the metals used domestically coming from foreign sources.
US imports of steel and aluminum last year were $31 billion and $27 billion, respectively, according to US Commerce Department data.
Vina Najibla, vice president of research and strategy at the Asia-Pacific Foundation in Canada, said tariffs are particularly damaging because “there are little economic or genuine national security grounds for them.”
“The job mainly creates economic pain for American consumers and key trading partners, as the US cannot make these products realistically on land and on the ground,” Najibla told Al Jazeera.
Instead, they introduce levels of “unpredictability and volatility that we have never seen in decades.”
By undermining established trade norms, the US “effectively encourages other countries to respond in physical form, and has a devastating impact on the stock markets and investors and consumer trust in North America and beyond,” Najibla said.
How does the country respond?
Canada
The largest steel and aluminum supplier in the United States has a strong stance on tariffs. Prime Minister Justin Trudeau has called tariffs “unjust” and “what to do.”
Canada has announced 25% retaliation tariffs on US goods worth $20.6 billion, including $8.8 billion in steel and $2 billion in aluminum imports. It also charges nearly $10 billion in additional charges on US products, including computers, servers, display monitors, water heaters and sports equipment.
These measures will take effect on Thursday.
“We’re going to stand up for our workers and we’re going to make sure that Americans understand that leadership decisions will have consequences,” Trudeau said earlier this week.
Mark Carney, who will take over Trudeau as prime minister, has pledged to maintain tariffs until the US promotes fair trade practices. He said he was willing to take a “a much more comprehensive approach to trade.”
“In a world filled with geopolitical and economic uncertainty, we firmly believe that it is not our common interest to burden tariffs on our economy,” he said Wednesday.
The latest tariffs are retaliating on March 4, retaliating on previous Trump taxes that were delayed by a month on March 4, adding to a 25% opposition to 25% of U.S. import imports.
european union
The EU has also announced retaliation measures targeting more than $28 billion in US products, including motorcycles, peanut butter and jeans. These measurements unfold in two phases.
Phase 1 (April 1) – Restoring previously suspended tariffs on US products worth $8.7 billion, including steel, aluminum, bourbon and motorcycles. Counterlevie, imposed between 2018 and 2020 during Trump’s first term, was suspended under the Biden administration. Phase 2 (Mid-April) – Introduces new tariffs on additional $19.6 billion worth of US exports, including poultry, dairy products, fruits and grains.
The European Commission’s Ursula von der Leyen warned that these tariffs would raise prices on both sides of the Atlantic, threatening jobs.
“I deeply regret this measure. Tariffs are taxes. They are bad for businesses and even worse for consumers,” she said, adding that the EU “will remain open to negotiations at all times.”
Mexico
Mexico’s response remains unknown. President Claudia Sheinbaum has shown that retaliation fees will only be implemented if negotiations fail. However, she has already struck a temporary exemption agreement with Trump, securing an exemption until April 2nd from Mexican imports under the US Mexico-Canada Agreement (USMCA) trade agreement signed under Trump’s first term.
However, analysts say products that are not USMCA compliant could still attract new 25% tariffs.
This comes after Mexico and Canada negotiated a one-month delay in tariffs, and the two countries agreed to promote border security measures. Trump, following his campaign promise to impose tariffs on Mexico, until he stopped immigration and drug trafficking across the border.
Brazil
Despite being one of the most difficult countries, Brazil chose diplomacy over retaliation. Brazilian officials are in talks with Washington in hopes of securing the exemption.
The government, led by leftist Luis Inacio Lula da Silva, has issued a statement regretting the “unjust” movements by the United States.
“President Lula told us he was calm, noting that he had negotiated under conditions that were even more disadvantageous than the current terms,” Finance Minister Fernando Haddad told reporters Wednesday.
South Korea
Trump accused South Korea of using the US, adding that the average tariffs in Seoul are four times higher than they provide evidence. Trade between the two close allies is almost free of tariffs due to free trade agreements.
“And we’re giving so much help military-wise and in many other ways to South Korea. But that’s what happens,” Trump said in a speech to the US Congress earlier this month.
He also pledged to dispose of US-backed chips and scientific laws by several Korean companies, including Samsung Electronics.
South Korea chose to negotiate rather than conflict. We have also activated “Full Emergency Response Mode” to protect local industries.
On Tuesday, South Korea’s representative president Choi Sang-mok said Trump’s “America First” policy had begun to target his country.
South Korean officials have been actively seeking dialogue with US counterparts to negotiate potential exemptions and address mutual concerns. Trade Minister Cheong In-Keo is scheduled to visit Washington, DC from March 13-14, and aims to discuss mutual tariffs and investment opportunities.
The visit will affect the Trump administration’s trade policy report and seek to present South Korea’s stance on tariffs.
China
Beijing is not a major US steel supplier. However, it took tariffs as a direct economic attack and responded proactively.
Mao Zedong, a spokesman for China’s Foreign Ministry, told reporters that China, the world’s largest steel producer and second-largest economy, will take all necessary steps to protect its rights and interests.
“No one wins in trade wars or tariff wars,” the spokesman said.
China has already slapped US tariffs in retaliation against Trump’s 20% blanket tariffs.
How will the tariff war affect our relationship with our allies?
Australia, another important US ally affected by Trump’s tariffs, said it would not retaliate. Prime Minister Anthony Albanese called the tariff “completely unfair,” but eliminated mutual tariffs as it would affect Australian consumers.
Canberra could be exempt from steel and aluminum tariffs under Trump’s first term.
According to Nadjibulla, these tariffs portray the image that the United States is becoming “untrusted partners of its closest allies.”
She said countries such as Canada, Australia and South Korea will “try to minimize their vulnerability” and will pursue strategies such as diversifying their trading partners.
“If a large economy engages in tariff escalation for Tatt, there is a greater risk of global trade slowdown,” she said. “These measures not only hurt short-term revenues, they threaten the entire public trade framework that has supported much of the global economic growth and stability.”