Trump administration stands firm on steel tariffs despite global lobbying

US President Donald Trump

The Trump administration is set to enforce strict 25% global tariffs on steel and aluminium this Wednesday, signalling a hardline stance despite intense lobbying from global allies and industry leaders, as reported by the Wall Street Journal.

While the White House recently granted temporary reprieves for Canada and Mexico on some tariffs, similar exemptions for the revamped steel and aluminium levies appear unlikely. President Trump has directed the Commerce Department to end all existing exemptions and broaden the scope of products covered under the tariffs, effective March 12.

“I’ve seen him do steel and aluminium tariffs before, so I have no reason to not expect that will take place,” said Sen. Bill Hagerty (R., Tenn.), a close Trump ally.

Global push for exemptions fails to gain traction

Countries including Japan, Australia, and members of the European Union have lobbied for exemptions, while Mexico sent a delegation to Washington for last-minute talks. Canada is also engaged in discussions with Trump’s team.

Major corporations like Alcoa, which produces aluminium across Canada, Australia, and Iceland, have also pushed for carve-outs. Alcoa’s CEO warned that the tariffs could jeopardize 100,000 US jobs reliant on foreign aluminium supplies that cannot be domestically sourced.

Despite these appeals, the White House remains firm. It argues that previous exemptions created loopholes allowing Chinese steel to enter the US duty-free, undermining national security protections. “Exemptions inadvertently created loopholes,” the administration wrote in its proclamation.

US domestic industry support and national security concerns

US steel and aluminium producers have strongly supported the tariffs. Last week, CEOs from eight leading steel companies, including US Steel and Cleveland Cliffs, urged Trump to reject any exemption requests, arguing that the move is critical for protecting American industry.

The tariffs will be enacted under Section 232 of the Trade Expansion Act of 1962, which permits trade restrictions for national security reasons. The scope is expected to be broad, covering not just raw materials but also products containing steel and aluminium, potentially raising prices for numerous metal goods.

Some scepticism remains on potential flexibility

Though the administration insists on a no-exemptions policy, Trump has shown past flexibility. In February, he suggested Australia could be exempt after speaking with Prime Minister Anthony Albanese, though such an exemption now seems unlikely.

Similarly, the recent reversal on Canada and Mexico tariffs—exempting goods compliant with the North American trade deal just two days after imposing them—has left some lawmakers uncertain about the final policy stance.

“The White House has shown itself to be adaptable on this tariff issue,” said Sen. Josh Hawley (R., Mo.). “So, there may well be some sort of [exemption] process. I don’t know, so let’s just see.”