Canada and Mexico are two of the US’s biggest steel trading partners, and Canada is the biggest supplier of aluminium metal into the US.
During his first term, Trump put tariffs of 25% on steel imports and 10% on aluminium imports from Canada, Mexico and the European Union.
But the US reached a deal a year later with Canada and Mexico to end those tariffs, although the EU import taxes remained in place until 2021.
Speaking aboard Air Force One, Trump said on Monday he would announce tariffs on “everybody” for steel and aluminium.
“Any steel coming into the United States is going to have a 25% tariff,” he said.
In response, Doug Ford, the premier of the province of Ontario, accused Trump of “shifting goalposts and constant chaos, putting our economy at risk” in an online post. Canada’s steel production is concentrated in Ontario.
Trump’s comments also caused the stocks of major South Korean steel and car makers to fall. South Korea is a major exporter of steel to the US.
Shares of steel firm POSCO holdings dropped as much as 3.6%, while those of Hyundai Steel were down as much as 2.9%.
Those of car maker Kia Corp also fell by 3.6% during early morning trading.
Trump’s move mark another major escalation in Trump’s trade policy, which has already sparked retaliation from China.
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