Trump's 25% tariff on steel and aluminum imports are set to take effect today

The proposed tariffs are expected to impact over $150 billion worth of imports, along with steel and aluminum.

US President Donald Trump's 25% tariffs on all steel and aluminum imports are set to take effect today, March 12, after midnight Washington time, or 9:30 am India time.

"As of 12:01 am eastern time on March 12, 2025, all imports of steel articles and derivative steel articles from these countries shall be subject to the additional ad valorem tariffs...," a White House statement has said.

Already, US Commerce Secretary Howard Lutnick has hinted that there will not be any reprieve from the 25% tariffs on steel and aluminum - including imports from Canada and Mexico - set to kick in from today. President Trump is using the tariffs on Mexico, Canada and China as a leverage to get these countries to arrest the flow of illegal drugs and fentanyl into US, aside of tightening the movement of illegal migrants into the country.

The proposed tariffs are expected to impact over $150 billion worth of imports, along with steel and aluminum.

Read More: US-Canada trade war heats up as Trump doubles metals tariffs, then backs off

American businesses have said that the proposed tariffs on steel and aluminum imports could escalate costs of businesses that rely on these metals. US imports of steel products from Canada and Mexico had increased in January by over 32% compared to a month ago, according to official US data.

Already, the proposed tariffs have significantly added to stock market volatility in US as well as for global stock markets. Economists fear Trump's trade policies could slow economic growth and perk up US inflation, even as costlier inputs are delaying investment and business orders in US. JPMorgan Chase said earlier this month that the probability of an economic downturn has risen to 31% from 17% at the end of November.

Read More: Trump has begun another trade war. Here's a timeline of how we got here

The risk of recession due to the threat of tariffs has triggering volatility in financial markets. US stocks fell on March 11 as investors worried about the impact of the latest tariff threats on the global economy. Already, global brokerage Citi has downgraded its outlook on US stocks to 'neutral' from the previous 'overweight,' as it weighs recession fears and weakening economic momentum. Fears of a downturn have wiped out $4 trillion from the S&P 500’s peak seen last month.