FACTBOX: US tariffs roil global metals markets

US President Donald Trump surprised markets April 9 when he paused country-specific tariffs for 90 days, while ratcheting up tariffs on China to a cumulative total of 145%.

Trump's flurry of tariff actions in the first few months of 2025 has shocked global metals markets and prompted retaliatory measures from some of the US' largest trading partners.

In his second term, Trump has made clear that tariffs will play a central role in US foreign and trade policy. Country-specific tariffs on Canada, Mexico and China are being used as leverage to stop illegal immigration and the flow of illicit drugs into the US, Trump has said in public remarks. Trump has also set global tariffs on all steel and aluminum imports in an effort to boost US industry, as well as a reciprocal tariff policy affecting major trade flows.

Sector-specific tariffs would stack with country-specific tariffs, adding to the complexity of the evolving trade landscape.

Trump on March 26 announced tariffs on automobiles, set to begin April 2, and automobile parts, set to begin May 3. Trump has said he plans additional tariffs on agricultural products and lumber in the future.

The US implemented "reciprocal tariffs" April 5, setting a baseline tariff rate of 10% for all countries except Canada and Mexico. However, many metals and minerals have been exempted from Trump's reciprocal tariff policy.

Higher tariff rates were originally assigned to countries with the largest trade surpluses with the US. These briefly went into effect April 9, but, less than a day after, Trump ordered a 90-day pause on all country-specific tariffs except for those on China.

In addition, Trump has ordered a Section 232 national security investigation into copper imports.

The aggressive moves have prompted retaliatory tariffs from Canada, the EU and China, as well as statements from other countries emphasizing their commitment to push for exemptions or concessions. The duties have sparked volatility in metals markets as participants attempt to navigate escalating trade tensions.

Retaliations and responses

• On Feb. 4, China imposed an additional 15% tariff on coking coal and other types of coal imported from the US in retaliation. China's Commerce Ministry and General Administration of Customs also tightened controls on the exports of five critical minerals -- molybdenum, tungsten, tellurium, bismuth and indium -- to protect national security interests. China will require licenses for exports of 20 products related to the five commodities.
• On March 4, Canada responded to US tariffs on all Canadian imports by immediately setting tariffs on $21 billion of US goods, including orange juice, spirits and beer. Canada plans to keep these tariffs in place until the US officially decides not to reimpose the Canada-specific tariffs. On March 13, Canada responded to US tariffs on all aluminum and steel by taking a "dollar for dollar" approach and imposing 25% tariffs starting March 13. Then on March 26, Canadian Prime Minister Mark Carney pledged a C$2 billion fund to support the domestic automobile industry and promised to develop an "All in Canada" automobile supply chain.
• The EU on March 12 said it would impose retaliatory tariffs on $28.4 billion of US goods in April, including reimposing suspended 2018 and 2020 rebalancing measures and imposing a new package of additional measures.
• On March 19, the EU proposed to cut steel imports by a further 15% starting in April to prevent cheap steel from flooding the European market after the US imposed new tariffs, according to European Commission Executive Vice President Stephane Sejourne.
• The Brazilian government "laments" the US government's decision to raise all steel and aluminum import tariffs and said it will seek to take measures to protect Brazilian producers.
• Australia and the UK failed to receive exemptions from the tariffs but vowed to continue to lobby the White House. The three countries have not planned countertariffs as of March 26.
• Japan offered no trade response to steel tariffs, but it is contemplating retaliation over automobile tariffs. Japanese Prime Minister Shigeru Ishiba said March 27 his country will "put all options on the table," according to media reports.
• On April 3, Canada announced 25% tariffs on all US-made automobiles not compliant with USMCA.
• The South Korean government said it would work to find a "mutually beneficial" solution for itself and the US following Trump's reciprocal tariff announcement.
• Japan will implement short-term measures to respond to US tariffs on imported automobiles and reciprocal tariffs. These include financial support to the country's affected sectors.
• EU member states on April 9 officially endorsed a European Commission proposal to implement trade countermeasures against the US in response to US reciprocal tariffs. After the US announced a 90-day pause on its tariffs, the EU responded with its own pause.
• Australia's steel industry is in talks with its federal government to strengthen its antidumping regime and add other safeguards to protect itself from the impacts of US tariffs, including a potential surge in steel imports.
• In a series of tit-for-tat tariff hikes between the US and China, China ultimately said it will implement 125% tariffs on US goods, effective April 12, in response to the US's reciprocal tariffs. China's Ministry of Finance said this would be the final rate hike, since US goods are no longer marketable with the 125% duty. China also imposed another export curb on rare earth minerals on April 4, making it harder for countries to source critical minerals with a wide range of applications, including defense technology, clean energy, and metal-strengthening alloys.

Prices

• Platts, part of S&P Global Commodity Insights, assessed the spot 99.7% P1020 US Aluminum Transaction Premium at 38.80 cents/lb plus LME cash, delivered Midwest on April 10, up 66.4% since the start of 2025.
• Platts assessed the daily TSI US hot-rolled coil index at $925/st on an ex-works Indiana basis on April 10, up 34.1% since the start of 2025.
• Platts assessed SS400 HRC of 3 mm thickness unchanged day over day at $446/mt FOB China April 3, down 5.3% since the start of 2025.
• Platts assessed domestic HRC prices in Northern Europe at Eur650/mt ex-works Ruhr April 10, up 15.2% since the start of 2025.

Trade flows

• Aluminum giants Rio Tinto and Alcoa both said they would shift their Canadian shipments away from the US and into Europe and other markets if tariffs on Canada became too burdensome. Alcoa's CEO added that aluminum from the Middle East and India may replace some Canadian imports in the US.
• Russia has offered to supply as much as 2.1 million mt of aluminum to the US.
• The US tariffs on all steel imports may cause a significant slowdown in global steel trade and accelerate more localized trade, according to market experts.
• Potential US tariffs on copper imports would likely reshape global trade flows of copper, according to industry watchers. The tariff probe has already prompted global copper, with South American origin in particular, to flow to the US. This is expected to continue in the months ahead until the US assessment on copper trade concludes, sources said.
• The US' reciprocal tariffs may bolster Turkey's steel exports, with the current rate as low as 10%, Turkish steel producers said April 3.