In yet another grand display of economic illiteracy disguised as bold leadership, Donald Trump has declared a 25% tariff on all steel and aluminium imports, regardless of the source. Standing aboard Air Force One, basking in his latest impulsive economic brainstorm, Trump made it clear: no exemptions, no negotiations, just pure, unfiltered protectionism.

The announcement, which Trump failed to specify when or how he would implement, marks his latest attempt at weaponising trade policy for political showmanship. And just like his previous tariff tantrums—where he threatened but backed down on Canada, Mexico, and Colombia—there’s every reason to believe this could be another bluster-filled gambit with little follow-through.

The problem? The United States relies heavily on imported aluminium and steel, mainly from Canada, Mexico, and the UAE. In 2023, over 80% of its aluminium demand was met by foreign imports. While domestic steel production remains a factor, many sectors—including aerospace, automotive, and energy—depend on specialised imported metals that American mills simply don’t produce.

Even oil drillers and wind turbine developers, who once benefited from selective tariff exemptions under Trump’s first presidency, will now find themselves in the line of fire.

South Korea, which saw its steel exports to the US drop by 30% after Trump’s first wave of tariffs, is now scrambling to assess its options. The Ministry of Trade in Seoul is already in emergency discussions, while Australia’s Prime Minister, Anthony Albanese, is preparing a desperate plea to Trump for exemptions.

Trump’s latest trade bombshell fits a familiar pattern: grand declarations, a lack of specifics, and an eventual retreat once the economic reality kicks in.

His tariff ambitions remain blurry at best, with threats targeting everything from pharmaceuticals to semiconductors, oil, and even the European Union. His shifting stance on China—sometimes hardline, other times open to negotiations—suggests this is less about coherent policy and more about using tariffs as political leverage in his chaotic global posturing.

This isn’t the first time Trump has waged war on metals. In 2018, he slapped a 25% tariff on steel and a 10% tariff on aluminium under the guise of “national security”. The result? Higher costs for American manufacturers increased consumer prices and minimal job creation in the domestic steel sector.

Today, the US steel industry is still struggling. Production remains well below full capacity, with rising costs eating into profitability. And now, Trump wants them to magically ramp up output—despite labour shortages, high energy costs, and a lack of infrastructure investment.

The reality is that Trump’s tariffs are more about politics than economics.

His fantasy of reshaping the American economy through import taxes ignores one fundamental truth: tariffs act as a tax on American businesses and consumers. By raising imported goods’ costs, Trump is setting the stage for higher prices, reduced competitiveness, and supply chain disruptions.

Economists warn that these tariffs could:

• Drive up production costs for American manufacturers who rely on imported metals;
• Hurt industries like automotive and construction, which already struggle with rising material costs;
• Trigger retaliatory measures from major trading partners, further squeezing US exporters.

Ironically, Trump’s nationalist rhetoric clashes with his own chaotic economic interventions.

On the same day he announced his new tariffs, he torpedoed a $14.1 billion deal between Japan’s Nippon Steel and US Steel, declaring:

“I don’t want US Steel to be owned by a foreign country. They can invest, but they can’t own.”

Of course, this contradicts basic economic principles. Foreign investment has long been a cornerstone of US economic growth, but Trump, in his usual transactional mindset, prefers to scare off investors rather than create a coherent industrial strategy.

Trump’s tariff spree is more about optics than outcomes. His constant reversals, arbitrary targets, and lack of economic foresight reveal a leader more interested in headlines than coherent policymaking.

While he talks about bringing back American industry, his actions are more likely to hurt US manufacturers, drive up costs, and alienate trade partners—the very opposite of what a strong, strategic trade policy should achieve.

The global economy, already fragile, can ill afford another round of Trump’s trade chaos.