Trump to impose new 25% tariffs on steel, aluminum

Trump announced the tariffs to reporters aboard Air Force One on Sunday while flying to the Super Bowl, ramping up the aggressive approach on trade that has dominated his first three weeks back in office.

But European and Asian markets rose Monday as traders appeared to shrug off Trump's threats, in contrast to a week ago when similar announcements sent global stocks tumbling.

Canada and Mexico -- which Trump has already threatened with tariffs -- are the biggest steel importers to the United States, according to US trade data. Brazil, Mexico and South Korea are also major steel providers.

"President Trump has made it clear that an important part of an America First Golden Age is steel production," National Economic Council Director Kevin Hassett told CNBC on Monday.

Trump is set to sign a number of executive orders in the Oval Office later in the day, the White House said. It was not clear if any of them covered his promised steel and aluminum tariffs.

He has also promised an announcement on Tuesday or Wednesday on broader "reciprocal tariffs" to match the levies other governments charge on US products.

- 'Losers' -

Republican Trump imposed sweeping tariffs during his 2017-2021 presidency to protect US industries, which he believed faced unfair competition from Asian and European countries, but his latest threats are still causing disquiet.

The European Commission reacted to the metals tariff threat, saying: "We will react to protect the interests of European businesses, workers and consumers from unjustified measures."

French President Emmanuel Macron vowed in an interview aired Sunday to go head-to-head with Trump over his wider tariff threats against the EU, though he said that the United States should focus its efforts on China.

German economy minister Robert Habeck said a tariff conflict "only has losers."

But he added that Europe would respond in a "united and determined manner" to any unilateral US tariffs.

Around 25 percent of European steel exports go to the United States, according to consultants Roland Berger.

Trump has already shown his fondness for weaponizing the United States' power as the world's largest economy, ordering tariffs on key trade partners China, Mexico and Canada soon after he took office.

He paused 25-percent levies against Canada and Mexico for a month after both countries vowed to step up measures to counter flows of the drug fentanyl and the crossing of undocumented migrants into the United States.

- 'Tariff fatigue' -

But he went ahead with tariffs on China, the world's second biggest economy, with products entering the United States facing an additional 10 percent levy.

Chinese retaliatory tariffs targeting US coal and liquified natural gas come into play on Monday.

Chinese foreign ministry spokesman Guo Jiakun said on Monday that "there is no winner in a trade war and tariff war."

Trump, who has promised a "new golden age" for the United States, insists that the impact of any tariffs would be borne by foreign exporters without being passed on to US consumers, despite most experts saying the contrary.

But he did acknowledge after announcing tariffs on Mexico, Canada and China earlier this month that Americans might feel economic "pain."

The dollar rose against the Canadian dollar, Mexican peso and South Korean won on Monday in the wake of Trump's announcement.

London stocks led gains in Europe approaching the half-way stage, while Hong Kong and Shanghai stocks rose Monday even as hopes of a delay to Trump's tariffs against China were dashed.

"The fact that global equity indices are higher at the start of the week, could be a sign of tariff fatigue," said Kathleen Brooks, research director at trading group XTB.