JAKARTA - Donald Trump, President of the United States (US), will soon announce the new 25% tariff policy on imported steel and aluminium.

In his remarks when met at Air Force One, Sunday (9/2), Trump emphasises that this policy will be applied to all supplying countries, without exception. However, the effective date of the policy has yet to be disclosed, as cited from Bloomberg.

For the record, this country has been relying on foreign supplies to meet the demands from various sectors, including construction, automotive, technology, and defence industry.

Based on the data of the US Geology Survey 2023, the US’ steel consumption reaches around 93 million tons, with net import accounts for 13% of total demand. Meanwhile, according to the Ministry of Trade of the US, Canada, Brazil, and Mexico are three primary steel suppliers for the country.

The US’ domestic steel manufacturer reported that import surge has indeed put pressure on profitability margin and productivity, thus also making this new tariff policy a protection measure towards domestic industry.

Furthermore, the US reported aluminium consumption level at 4 million tons in 2023, 44% of which came from imports.

Based on Morgan Stanley report, Canada is the main source of aluminium supply to the US, covering total 56% of total imported aluminium. (EF/KR/ZH)