• Tariffs set for March 12: Aluminum and steel
  • Potential tariffs: Copper, timber, and lumber
    • Steel production facility in Canada.

    Steel production facility in Canada. (AP)

    Share

    Tariffs set for March 12: Aluminum and steel Potential tariffs: Copper, timber, and lumber

    What Would Tariffs on Aluminum, Steel, and Copper Mean for the Western Hemisphere?

    By Gladys Gerbaud

    Learn which countries are the leading sources of the products touched by Trump’s trade agenda.

    On March 12, tariffs on all aluminum and steel imported into the United States are expected to go into effect. U.S. President Donald Trump set the tariffs at 25 percent for all countries when he announced them in February. On March 11, a day before these were expected to hit, he increased the rate on Canada to 50 percent, following Ontario’s levy on electricity exported to the United States. Later that day, both countries reverted their threats, and Canada will face the same 25 percent tariff as all other countries.

    Canada, in parallel with Mexico, has been engaging in a tariff back-and-forth with the United States since Trump threatened, imposed, and then delayed tariffs on both countries. These upcoming tariffs on foreign aluminum and steel will affect Canada—the leading source of both imports—and countries in Latin America, as the United States represents a major buyer of aluminum and steel from Argentina, Brazil, and Mexico.

    Trump has also signed orders calling for an investigation into the national security impact of the imports of copper, timber, and lumber, as well as an increase in domestic production. Though the orders did not set a specific tariff percentage for these imports, Trump did mention two of these products in his March 4 address to Congress, saying “I have also imposed a 25 percent tariff on foreign aluminum, copper, lumber, and steel.” 

    Which countries in the Western Hemisphere are the leading sources of these imports for the United States? AS/COA Online looks at U.S. trade around steel, aluminum, copper, timber, and lumber.

    Tariffs set for March 12: Aluminum and steel

    “Our nation requires steel and aluminum to be made in America, not in foreign land,” Trump said when announcing the tariffs measures in February. This is not the first time Trump has targeted these products with trade action. During his first term, in March 2018, he imposed 25 percent tariffs on steel and 10 percent on aluminum from all countries. A week in, he announced Canada and Mexico were exempt from the tariffs, a move he later retracted on June 1, 2018. After retaliation and back-and-forth, the United States lifted the tariffs on Canadian and Mexican aluminum and steel in 2019. Trump issued exemptions for other countries, including Argentina and Brazil, which led to negotiations and the imposition of quotas for these countries to avoid tariffs. Trump’s proclamation of the new tariffs on aluminum and steel eliminates these quotas. 

    This time around, Trump has announced no exemptions so far. Some of the Western Hemisphere’s largest economies, like Argentina, Brazil, and Mexico, are among the United States’ top sources for both imports. Canada sits at the top of both lists.

     

    In the days leading up to March 12, Latin American officials, trying to prevent the upcoming tariffs, have met with U.S. officials. Brazilian Vice President Geraldo Alckmin spoke with U.S. Commerce Secretary Howard Lutnick on March 6. Brazil is considering decreasing tariffs on ethanol imports to negotiate with the Trump administration. On March 10, Mexican Secretary of Economy Marcelo Ebrard met with U.S. officials in Washington, DC. 

    Potential tariffs: Copper, timber, and lumber

    Though Trump has not yet signed an executive order imposing tariffs on copper, timber, or lumber, the president did mention two of these imports during his address to Congress, saying he would impose a 25 tariff on copper and lumber.

    Trump advisers have expressed concerns that China is seeking to dominate global copper production are part of the motivation for the tariff. 

    A Latin American country leads the list of countries from which the United States imports copper: Chile. The country’s Ministry of Foreign Affairs has convened a working group to study the potential effect of tariffs imposed by the United States. Top Chilean officials, including the Minister of Foreign Affairs Alberto van Klaveren, met with U.S. diplomats in Washington, DC on March 10. 

     

    The other potential tariff Trump has threatened is on lumber and timber, which are both wood imports. Timber refers to wood that has not been processed, while lumber refers to wood that has been processed into materials for building, for instance, cut up into boards. These wood products are an important part of the U.S. construction sector, especially in residential construction. 

    Canada is the leading source of lumber imports into the United States, with half of all imports of the product coming from the northern neighbor in 2021. Canadian softwood lumber is already subject to duties of 14.5 percent, due to a long-standing trade dispute over dumping practices.