Trump Raises Steel and Aluminum Tariffs to 25% on All Countries, Eliminating All Exemptions; EU and Canada Retaliate

On March 12, 2025, the Trump administration imposed a universal 25% tariff on all steel and aluminum imports worldwide under Section 232 of the Trade Expansion Act of 1962, eliminating every country-specific exemption, tariff rate quota, and exclusion that had been negotiated under both the first Trump and Biden administrations.

Scope of the Tariffs

• 25% ad valorem on all steel articles and derivatives from every country
• 25% ad valorem on all aluminum articles and derivatives from every country
• 200% tariff on aluminum from Russia specifically
• All existing tariff rate quotas terminated as of March 11
• All general and country-specific exclusions revoked
• Coverage expanded to include downstream derivative products (automotive parts, construction materials, consumer goods containing steel/aluminum)

The elimination of exemptions was the key escalation. Under previous policy, major allies including the EU, UK, Canada, Mexico, Australia, South Korea, Japan, and Brazil had operated under negotiated quotas or full exemptions. All were swept away overnight.

EU Retaliation

The European Union responded with a two-phase approach:

• Phase 1 (April 1): Reimposition of previously suspended 2018/2020 countermeasures on U.S. goods
• Phase 2 (mid-April): New package of countermeasures targeting additional U.S. exports, valued at approximately EUR 26 billion

The EU countermeasures targeted politically sensitive American exports including bourbon, motorcycles, agricultural products, and manufactured goods from key Congressional districts.

Canadian Retaliation

Canada announced dollar-for-dollar retaliatory tariffs of 25% on approximately CA$29.8 billion (US$21 billion) of American goods, effective March 13, 2025 — one day after the U.S. tariffs took effect.

Significance

The universal Section 232 tariffs represented a fundamentally different trade posture than the first Trump administration’s version, which had included extensive country-specific deals and exemptions. By eliminating all carve-outs, the administration signaled that tariffs were not primarily a negotiating tool but a permanent feature of economic policy. The action accelerated the retaliatory spiral that would culminate in the Liberation Day tariffs three weeks later.