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
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:
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.