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Trump’s steel, aluminium tariffs: How are targeted countries responding?

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Trump’s steel, aluminium tariffs: How are targeted countries responding?

President Donald Trump’s tariffs on the imports of steel and aluminium by the United States are sending shockwaves through global markets and escalating tensions with key trading partners, including Canada, Mexico and the European Union.

Some countries are fighting back with retaliatory tariffs, others are seeking exemptions, and a few are trying to negotiate their way out of the 25 percent tariffs.

So, who is escalating the trade war, who is trying to avoid it, and what does this mean for the industries that rely on these metals?

Who supplies steel and aluminium to the US?

Canada, Brazil, and Mexico are the top three suppliers of steel to the US, collectively accounting for about 49 percent of its imports between March 2024 and January 2025, according to the International Trade Administration. The remaining leading suppliers are South Korea, Vietnam, Japan, Germany, Taiwan, the Netherlands, and China, which together make up 30 percent of US steel imports.

Here is a breakdown:

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  • Canada – 16 percent
  • Brazil – 14 percent
  • Mexico – 9 percent
  • South Korea – 8 percent
  • China – 2 percent

For aluminium, the biggest suppliers are Canada, the United Arab Emirates, Russia and Mexico. Canada is the dominant supplier, responsible for nearly 40 percent of US aluminium imports, followed by the UAE, Russia and Mexico.

The tariff war will have a widespread effect on manufacturers and consumers in the US as steel and aluminium are crucial in the making of home appliances, cars, planes, phones and buildings, among others.

Steel is a backbone material for construction, manufacturing, transport, and energy, with the construction sector using one-third of all steel imports. It will push up costs for infrastructure projects, including airports, schools and roads.

Aluminium, being lightweight and corrosion-resistant, is essential for the automotive and aerospace industries, as well as food and beverage packaging.

The US is particularly dependent on aluminium imports, with roughly half of the metal used in the country coming from foreign sources.

The US import of steel and aluminium last year was $31bn and $27bn, respectively, according to the US Department of Commerce data.

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Vina Nadjibulla, vice president of research and strategy at the Asia Pacific Foundation of Canada, said the tariffs are especially damaging because there is “little economic or genuine national security rationale for them”.

“The US can’t realistically onshore enough of these commodities, so the duties mainly create economic pain for American consumers and key trading partners,” Nadjibulla told Al Jazeera.

They instead introduce a level of “unpredictability and volatility we haven’t seen in decades”.

By undermining established trade norms, the US “effectively encourages other nations to respond in kind, with devastating impact for the stock markets and investor and consumer confidence across North America and beyond”, Nadjibulla said.

How are countries responding?

Canada

The biggest steel and aluminium supplier to the US has taken a strong stance against the tariffs. Prime Minister Justin Trudeau has called the tariffs “unjustifiable” and a “dumb thing to do”.

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Canada announced 25 percent retaliatory tariffs on $20.6bn worth of US goods, including $8.8bn on steel and $2bn in aluminium imports. It has also imposed an additional tariff of nearly $10bn on US goods such as computers and servers, display monitors, water heaters and sports equipment, among others.

These countermeasures take effect on Thursday.

“We are going to stand up for our workers, and we are going to make sure the American people understand that their leadership’s decisions have consequences,” Trudeau said earlier this week.

Mark Carney, who will succeed Trudeau as prime minister, has pledged to maintain the tariffs until the US commits to fair trade practices. He said he is willing to take “a much more comprehensive approach for trade”.

“We firmly believe that in a world fraught with geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs,” he said on Wednesday.

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The latest tariffs are in addition to the 25 percent counter-tariffs on $20.8bn of US imports, imposed on March 4 in retaliation to the previous Trump levy that has since been delayed by a month.

European Union

The EU has also announced retaliatory measures targeting more than $28bn worth of US goods such as motorcycles, peanut butter, and jeans, among others. These measures will roll out in two phases:

  • Phase 1 (April 1) – Reinstating previously suspended tariffs on $8.7bn worth of US products, including steel, aluminium, bourbon, and motorcycles. The counter levies, which were imposed between 2018 and 2020 during Trump’s first term, were suspended under the Biden administration.
  • Phase 2 (mid-April) – Introducing new tariffs on an additional $19.6bn worth of US exports, such as poultry, dairy products, fruits, and cereals.

European Commission President Ursula von der Leyen has warned that these tariffs will increase prices and threaten jobs on both sides of the Atlantic.

“We deeply regret this measure. Tariffs are taxes. They are bad for business and even worse for consumers,” she said, adding that the EU “will always remain open to negotiation”.

Mexico

Mexico’s response remains unclear. President Claudia Sheinbaum has indicated that any retaliatory tariffs would be implemented only if negotiations fail. However, she has already struck a temporary waiver deal with Trump, securing an exemption until April 2 for Mexican imports under the US-Mexico-Canada Agreement (USMCA) trade agreement signed under Trump’s first term.

However, analysts say goods that do not comply with the USMCA could still attract the new 25 percent tariffs.

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This comes after Mexico and Canada negotiated a one-month delay in the tariffs, during which both countries agreed to boost border security measures. Trump has followed through with his campaign promise to impose tariffs on Mexico until it stopped immigration and drug trafficking through its borders.

Brazil

Despite being one of the hardest-hit nations, Brazil has chosen diplomacy over retaliation. Brazilian officials are engaging in talks with Washington in hopes of securing an exemption.

The government led by left-wing President Luiz Inacio Lula da Silva issued a statement regretting the “unjustifiable” move by the US.

“President Lula told us to remain calm, noting that in the past we have negotiated under conditions that were even more unfavourable than the current ones,” Finance Minister Fernando Haddad told reporters on Wednesday.

South Korea

Trump has accused South Korea of taking advantage of the US, adding that Seoul’s average tariff is four times higher, without providing proof. The trade between the two close allies is almost tariff-free due to a free trade agreement.

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“And we give so much help militarily and in so many other ways to South Korea. But that’s what happens,” Trump said during his address to the US Congress earlier this month.

He also promised to scrap the CHIPS and Science Act, under which several Korean companies, including Samsung Electronics, receive US assistance.

South Korea has opted for negotiation rather than confrontation. It has also activated a “full emergency response mode” to protect local industries.

On Tuesday, South Korea’s acting President Choi Sang-mok said Trump’s “America First” policy had started targeting his country.

South Korean officials have actively sought dialogue with their US counterparts to negotiate potential exemptions and address mutual concerns. Trade Minister Cheong In-kyo is scheduled to visit Washington, DC, on March 13-14, aiming to discuss reciprocal tariffs and investment opportunities.

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The visit seeks to influence the Trump administration’s trade policy report and to present South Korea’s stance on tariffs.

China

Beijing is not a leading steel supplier to the US. However, it has taken the tariffs as a direct economic attack and responded aggressively.

Mao Ning, spokesperson at the Chinese Ministry of Foreign Affairs, told reporters the move was in violation of World Trade Organization rules, and that China, the world’s largest steel producer and the second-largest economy, will take all necessary measures to safeguard its rights and interests.

“No one wins in a trade war or a tariff war,” the spokesperson said.

China has already slapped tariffs on the US in retaliation to the 20 percent blanket tariff imposed by Trump.

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How will the tariff war affect US ties with its allies?

Australia, another key US ally which has been affected by Trump’s tariffs, said it would not retaliate. Prime Minister Anthony Albanese called the tariff “entirely unjustified”, but ruled out reciprocal tariffs as it would affect Australian consumers.

Canberra had managed to get an exemption from steel and aluminium tariffs under Trump’s first term.

According to Nadjibulla, these tariffs paint an image that the US is becoming “an unreliable partner for its closest allies”.

She said countries such as Canada, Australia, and South Korea “will look to minimise their vulnerabilities” and pursue strategies like diversifying trade partners.

“When large economies engage in tit-for-tat tariff escalations, the risk of a global trade slowdown looms larger,” she said. “These measures don’t just hurt the near-term bottom line – they threaten the entire framework of open trade that has underpinned much of the world’s economic growth and stability.”

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Exclusive: CIA highlighted Cuba’s grim economy but gave mixed view on government falling

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Exclusive: CIA highlighted Cuba’s grim economy but gave mixed view on government falling
  • CIA produced reports highlighting Cuba’s economic collapse
  • Energy sector was portrayed in particularly dire shape
  • Trump suggested US raid in Venezuela could cause Cuba to fall
  • CIA view was inconclusive on whether economic hardship would mean collapse of the government
MIAMI/WASHINGTON, Jan 10 (Reuters) – U.S. intelligence has painted a grim picture of Cuba’s economic and political situation, but its assessments offer no clear support for President Donald Trump’s prediction that last weekend’s military action in nearby Venezuela leaves the island nation “ready to fall,” said three people familiar with the confidential assessments.
The CIA’s view is that key sectors of the Cuban economy, such as agriculture and tourism, are severely strained by frequent blackouts, trade sanctions and other problems. The potential loss of oil imports and other support from Venezuela, for decades a key ally, could make governing more difficult for the administration that has ruled Cuba since Fidel Castro led a revolution in 1959.

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But the most recent CIA assessments were inconclusive on whether the worsening economy would destabilize the government, said the people familiar with the intelligence, speaking on the condition of anonymity to share sensitive information.

CUBA ‘READY TO FALL’: TRUMP

These assessments are notable because Trump and other U.S. officials have suggested that shutting off Venezuelan oil to the island after the Caracas operation could topple the government in Havana, a longtime dream of Secretary of State Marco Rubio and some other high-ranking officials in the Trump administration.

“Cuba looks like it is ready to fall,” Trump told reporters on Air Force One on Sunday. “I don’t know if they’re going to hold out, but Cuba now has no income. They got all their income from Venezuela, from the Venezuelan oil.”

The White House, the CIA and the Cuban Ministry of Foreign Affairs did not respond to requests for comment. Reuters could not determine if the CIA had produced an updated assessment since U.S. forces arrested Venezuela’s President Nicolas Maduro last Saturday.

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Venezuela is Cuba’s top oil supplier. Since Maduro’s capture, the U.S. has successfully pressed Venezuelan interim President Delcy Rodriguez to send essentially all of Venezuela’s oil to the U.S.

Given the dire assessments of Cuba’s energy situation even when Venezuelan oil was flowing to the island, the impacts of Caracas’ shifting oil flows on Cuba’s economy will be severe, independent analysts say.

ENOUGH PAIN FOR A REVOLUTION?

Cuba’s Communist economy has performed poorly for decades amid rigid state planning and a U.S. embargo.

But a confluence of factors in recent years – including Venezuela’s declining economy and a drop-off in tourism following the COVID-19 outbreak – has compounded Cuba’s pain.

The people who were familiar with the intelligence and spoke to Reuters said the CIA had described Cuba’s economy in very poor terms – although their descriptions differed in degree. One official said the situation described in the assessments was not quite as bad as the “Special Period” of the 1990s, a time of prolonged economic pain following the withdrawal of the Soviet Union’s support in the late 1980s and early 1990s.

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One of the officials, however, said blackouts were lasting on average 20 hours a day outside of Havana, which had not occurred previously.

Whether or not economic suffering actually leads to government change is unclear – a reality acknowledged in the CIA assessments.

OUTMIGRATION OF YOUNGER PEOPLE

Two U.S. officials said the U.S. government assessed that there has been a demographic collapse on the island in recent years, with large numbers of people under 50 having migrated from Cuba. That could blunt the push for political reform, which in other countries tends to draw energy from young people.

Cuba’s census estimated the population at over 10 million in 2023, but one of the officials said it likely now stands at less than 9 million.

Richard Feinberg, a professor emeritus at the University of California San Diego who served in high-ranking U.S. national security roles for decades, said economic conditions in Cuba were “certainly very bad.”

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He noted that Cuba’s President, Miguel Díaz-Canel, who took office in 2021, does not have the widespread legitimacy enjoyed by former leader Fidel Castro.

“When a population is really hungry, what it does is, your day-to-day is just about survival. You don’t think about politics, all you think about is putting bread on the table for your family,” Feinberg said.

“On the other hand, people can become so desperate that they lose their fear, and they take to the streets.”

Reporting by Gram Slattery in Miami, Humeyra Pamuk and Jonathan Landay in Washington
Editing by Craig Timberg and Rod Nickel

Our Standards: The Thomson Reuters Trust Principles., opens new tab

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Nobel Institute shuts down talk of Venezuelan leader sharing Peace Prize with Trump

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Nobel Institute shuts down talk of Venezuelan leader sharing Peace Prize with Trump

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The organization that oversees the Nobel Peace Prize rejected recent suggestions that Venezuelan opposition leader María Corina Machado could give or share her award with President Donald Trump.

The Norwegian Nobel Institute shut down the idea Friday, after Machado suggested that she might transfer the prestigious award to Trump earlier this week.

“Once a Nobel Prize is announced, it cannot be revoked, shared, or transferred to others,” the institute said in a statement. “The decision is final and stands for all time.”

The statement comes after Machado floated the idea during an appearance Tuesday on Fox News’ “Hannity.”

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UNITED NATIONS ‘UPSET’ THAT TRUMP TOOK ‘BOLD ACTION’ TO IMPROVE VENEZUELA, SAYS UN AMB. MIKE WALTZ

Nobel Peace Prize laureate Maria Corina Machado waves at the Grand Hotel in Oslo, Norway, early Thursday, Dec. 11, 2025. (Lise Åserud/NTB Scanpix via AP)

“Did you at any point offer to give him the Nobel Peace Prize?” Sean Hannity asked. “Did that actually happen?”

Machado responded, “Well, it hasn’t happened yet.”

“I certainly would love to be able to personally tell him that we believe — the Venezuelan people, because this is a prize of the Venezuelan people — certainly want to give it to him and share it with him,” Machado continued. “What he has done is historic. It’s a huge step towards a democratic transition.”

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TRUMP ADMIN SAYS MADURO CAPTURE REINFORCES ALIEN ENEMIES ACT REMOVALS

Nobel officials said the Peace Prize cannot be shared after Machado suggested honoring Trump. (REUTERS/Maxwell Briceno and Win McNamee/Getty Images)

On Jan. 3, Trump announced that the U.S. had successfully completed an operation to capture authoritarian Venezuelan President Nicolás Maduro, who is now facing drug trafficking charges in New York.

Trump was asked during an appearance Thursday on “Hannity” whether he would accept the Nobel Prize from Machado.

“I’ve heard that she wants to do that,” Trump responded. “That would be a great honor.”

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TRUMP OUSTING OF MADURO DRAWS PARALLELS TO US RAID IN PANAMA – BUT THERE ARE SOME MAJOR CONTRASTS

Opposition leader Maria Corina Machado gestures during an anti-government protest on January 9, 2025 in Caracas, Venezuela (Jesus Vargas/Getty Images)

Machado secretly escaped Venezuela last month and traveled to Norway to receive the Nobel Peace Prize, which she dedicated to Trump.

“Let me be very clear. As soon as I learned that we had been awarded the Nobel Peace Prize, I dedicated it to President Trump because I believed at that point that he deserved it,” Machado said on “Hannity.” “And a lot of people, most people, said it was impossible to achieve what he has just done on Saturday, January 3rd.”

Trump said he plans to meet with the Venezuelan opposition leader in Washington next week.

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He has previously stated that Machado “doesn’t have the support within or the respect within the country” to lead. Trump has supported acting President Delcy Rodríguez, a longtime Maduro loyalist, who previously served as vice president under Maduro.

Fox News Digital’s Landon Mion contributed to this report.

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Somali minister says Israel plans to displace Palestinians to Somaliland

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Somali minister says Israel plans to displace Palestinians to Somaliland

Somalia’s minister of defence, Ahmed Moalim Fiqi, has accused Israel of planning to forcibly displace Palestinians to the breakaway region of Somaliland, denouncing the alleged plan as a “serious violation” of international law.

In an interview with Al Jazeera on Saturday, Fiqi called on Israeli Prime Minister Benjamin Netanyahu to withdraw his diplomatic recognition of the “separatist region”, calling the move announced late last year a “direct attack” on Somalia’s sovereignty.

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“Israel has long had goals and plans to divide countries – maybe before 20 years – and it wants to divide the map of the Middle East and control its countries… this is why they found this separatist group in northwestern Somalia,” Fiqi told Al Jazeera.

“We have confirmed information that Israel has a plan to transfer Palestinians and to send them to [Somaliland],” he added, without elaborating.

Fiqi’s comments came amid a global outcry over Netanyahu’s decision in December to recognise Somaliland, a breakaway part of Somalia comprising the northwestern portion of what was once the British Protectorate.

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The move made Israel the first country in the world to recognise Somaliland as an independent state and came months after The Associated Press news agency reported that Israeli officials had contacted parties in Somalia, Somaliland and Sudan to discuss using their territory for forcibly displacing Palestinians amid its genocidal war on Gaza.

Somalia denounced the Israeli move, with President Hassan Sheikh Mohamud telling Al Jazeera that Somaliland had accepted three conditions from Israel: The resettlement of Palestinians, the establishment of a military base on the coast of the Gulf of Aden, and joining the Abraham Accords to normalise ties with Israel.

Officials in Somaliland have denied agreeing to resettle Palestinians from Gaza, and say there have been no discussions on an Israeli military base in the area.

But Fiqi on Saturday reiterated that Israel “wants to create a military base to destabilise the region” on the Bab al-Mandeb Strait, which connects the Gulf of Aden to the Red Sea.

“I see it as an occupation to destabilise the area,” Fiqi added.

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He also stressed that Israel has no legal right to grant legitimacy to a region within a sovereign state.

Somaliland first declared independence from Somalia in 1991, but it has failed to gain recognition from any United Nations member state since.

Israel’s world-first announcement triggered protests in Somalia and swift criticisms from dozens of countries and organisations, including Turkiye, Saudi Arabia and the African Union.

Fiqi told Al Jazeera that Israel’s move falls into a decades-long goal to control the Middle East and accused Israel of exploiting separatist movements in the region. Roughly half of the areas formerly known as Somaliland have declared their affiliation with Somalia over the past two years, he added.

The minister praised the countries that had condemned Israel and pledged that Somalia would lean on all diplomatic and legal means to reject Israel’s “violation”.

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He also commended United States President Donald Trump’s administration for not recognising Somaliland.

Although the US was the only member of the 15-member United Nations Security Council that did not condemn Israel for the recognition on December 30, it said its position on Somaliland had not changed.

For its part, Somaliland’s governing party has defended its newfound relations with Israel after Israeli Minister of Foreign Affairs Gideon Saar travelled to Hargeisa, the region’s largest city and self-declared capital, earlier this week.

Hersi Ali Haji Hassan, chairman of the governing Waddani party, told Al Jazeera days later that Somaliland was “not in a position to choose” who provided it with legitimacy after decades of being spurned by the international community.

“We are in a state of necessity for official international recognition,” Hassan said. “There is no choice before us but to welcome any country that recognises our existential right.”

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Hassan did not deny the prospect of a potential military base.

“We have started diplomatic relations… This topic [a military base] has not been touched upon now,” he said.

When pressed on whether Somaliland would accept such a request in the future, Hassan said only to “ask the question when the time comes”, calling the line of inquiry “untimely”.

Israeli think tanks say Somaliland’s location, at the gateway to the Red Sea and across from Yemen, make it a strategic site for operations against the Yemeni Houthi rebel group, which imposed a naval blockade on Israeli-linked shipping before the US-brokered ceasefire in Gaza.

The Institute for National Security Studies, in a November report, said Somaliland’s territory could “serve as a forward base” for intelligence monitoring of the Houthis and serve “a platform for direct operations” against them.

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The Houthis said that any Israeli presence would be a target, a statement Somaliland’s former intelligence chief, Mostafa Hasan, said amounted to a declaration of war.

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