US President Donald Trump has substantially raised tariffs on steel and aluminium imports to a flat 25 per cent "without exceptions or exemptions" in a move to aid the struggling industries but which increases the risk of a multi-front trade war.
A White House official confirmed that the measures would take effect on March 4.
The tariff rate will rise back to 25 per cent on millions of tons of steel and aluminum imports from Canada, Brazil, Mexico, South Korea and other countries that had been entering the US duty free under carve-outs.
The move will simplify tariffs on the metals "so that everyone can understand exactly what it means," Trump told reporters.
"It's 25 per cent without exceptions or exemptions. That's all countries, no matter where it comes from, all countries."
Earlier, Australia's prime minister Anthony Albanese said the US president was considering an exemption for Australian steel and aluminium products following a phone call between the two leaders on Tuesday morning Australian time.
Later, Trump confirmed the Australian request was under consideration, telling reporters in the Oval office that the trade surplus with Australia was one reason he was considering a tariff exemption.
"We actually have a surplus," Trump said.
“It’s one of the only countries which we do. And I told (the prime minister) that that’s something that we’ll give great consideration to.”
Trump also will impose a new North American standard requiring steel imports to be "melted and poured" and aluminum to be "smelted and cast" within the region to curb US imports of minimally processed Chinese and Russian metals.
The order also extends the tariffs to downstream products that use foreign-made steel, including fabricated structural steel, aluminium extrusions and steel strand for pre-stressed concrete, a White House official said.
As he signed the order at the White House, Trump said he would follow Monday's action with announcements about reciprocal tariffs on all countries that impose duties on US goods over the next two days, and said he was also looking at tariffs on cars, semiconductor chips and pharmaceuticals.
Asked about threats of retaliation by other countries against his new tariffs, Trump said: "I don't mind."
Trump's trade adviser Peter Navarro said the latest measures would help US steel and aluminum producers and shore up America's economic and national security.
"The steel and aluminum tariffs 2.0 will put an end to foreign dumping, boost domestic production and secure our steel and aluminum industries as the backbone and pillar industries of America's economic and national security," he told reporters.
"This isn't just about trade. It's about ensuring that America never has to rely on foreign nations for critical industries like steel and aluminum."
Trump first targeted steel and aluminum for tariffs in 2018. He later granted several countries exemptions, including Canada, Mexico and Australia, and struck duty-free quota deals for Brazil, South Korea and Argentina based on pre-tariff volumes.
Trump's successor, former President Joe Biden, later negotiated similar duty-free quotas for Britain, Japan and the EU.
Before the proclamations, shares in US steel and aluminum makers jumped, while shares in European and Asian steelmakers fell.
The largest sources of US steel imports are Canada, Brazil and Mexico, followed by South Korea and Vietnam, according to government and industry data.
Canada accounted for 79 per cent of US primary aluminium imports in the first 11 months of 2024.
US trade partners warned the new barriers would hurt US automakers, shipbuilders and other industries.
The European Commission said it saw no justification for the tariffs and said President Ursula von der Leyen would meet US Vice President JD Vance in Paris on Tuesday during an AI summit.
Trump has long complained about the EU's 10 per cent tariff on auto imports, much higher than the US car rate of 2.5 per cent.
Overall, the US trade-weighted average tariff rate is about 2.2 per cent, according to World Trade Organisation data, compared to 12 per cent for India, 6.7 per cent for Brazil, 5.1 per cent for Vietnam and 2.7 per cent for the EU.
US data showed that demand for aluminum last year far exceeded domestic production, leaving the country largely reliant on imports.
