Trump’s 2025 Steel and Aluminum Tariffs: How They Impact the U.S., Canada, Mexico, and Global Trade

By Shubhendra Anand , 25 July, 2025

Officially starting on March 12, 2025, the Trump administration's 25 percent tariffs on all steel and aluminum imports formally marked a dramatic change in the United States (U.S.) trade policy meant to support home manufacturing. Although these tariffs safeguard American businesses, their effects on the closest trade partners, especially Canada and Mexico, and the U.S. economy might be significant.

 Canada, the top supplier of steel and aluminum to the United States, is expected to suffer most from these policies. With a predicted 0.39 percent drop in real GDP in 2025, the country's significant dependence on the U.S. market for these metals is highlighted. This reliance reveals a weakness in Canada's economic framework, which makes such trade policies especially prone to be used. The tariffs have already raised tensions; Ontario Premier Doug Ford temporarily halted a proposed 25 percent power fee on U.S. states Michigan, Minnesota, and New York, prompting President Trump to withdraw threats of tripling tariffs on Canadian metals.

 Another vital trade partner, Mexico, is expected to suffer economically; their projected GDP drop in 2025 is around 0.19 percent. Because the North American supply chain is so linked, these tariffs might cause disruptions in sectors depending on steel and aluminum imports outside of metals. The lack of exclusions for friends like Canada and Mexico has sparked questions over the broader consequences for trade ties and regional economic stability.

 With a projected short-term real GDP decline of around 0.02 percent in 2025, the European Union (EU) has a relatively minor influence. Around 5 percent. of all EU exports are impacted, and a tiny fraction are headed for the United States. With its strong automotive sector, Germany is the most affected among EU countries; its forecast 0.03 percent. decline is  In response, the European Commission declared counter-tariffs on USD 28 Billion worth of U.S. products, scheduled to start in April, indicating growing trade tensions.

                                             Where The US Gets Its Steel?