Final Thoughts

He did say it could fall further in the next few weeks, but “hopefully it will stay in the top 10.”

We saw over the weekend that Trump is not afraid to use that word “tariff” as a blunt instrument. If the world of international relations traditionally strives to use a croquet mallet in the appearance of diplomacy, Trump is more fond of the sledgehammer.

When Colombian President Gustavo Petro refused to allow airplanes carrying deported migrants from the US into Colombia, Trump reacted. Tariffs and other sanctions were applied as he held court on the golf course. The Colombian president caved. The tariffs were removed. But the threat remains.

In the talk in Florida, Trump informed the world that any other leader defying the deportations would face “massive tariffs and other sanctions.”

Steel tariffs?

Even though currently standing at number four, the word “tariff” was thrown out a lot in the speech. But what does it mean for steel?

Trump was adamant in his speech about “bringing production back” to America, and this included “placing tariffs on steel, aluminum and copper.”

He noted the US “will look at pharmaceuticals, semiconductors, steel and other industries, and you will see things happening.”

Trump cited placing tariffs on South Korea as helping to save Whirlpool and its production of washing machines.

As the guy who slapped on Section 232 tariffs in 2018, it’s hard to imagine he’s bluffing.

Overarching theory?

What is the method behind it all?

Trump said, “We are going to protect our people and business and countries with tariffs.”

“If they don’t make their product in America, then very simply they should have to pay tariffs. This will bring in trillions of dollars to the country,” he added.

Canada and Mexico?

Of course, the threat of 25% tariffs is looming over USMCA partners Canada and Mexico on Feb. 1.

Though he didn’t speak of it directly, he did speak about the threats posed by cars made in Canada and Mexico.

Trump said Mexico has taken 32% of business in auto from the US over 30 years. “The other is Canada. They send us millions of cars. We don’t need them.”

The president added that “companies can build a plant if they want, but they have to build it in the United States.”

Does that signal the end of friendshoring? Or maybe the start of Trump-shoring, where the status of your friendship can change over a few holes of golf? Who knows, but the periodic review of the USMCA in 2026 will definitely be interesting.

AISI lauds Trump

Responding to Trump’s talk of steel tariffs, Kevin Dempsey, president and CEO of the American Iron and Steel Institute, said the tariffs from Trump’s first term were successful, and more remains to be done.

In a statement to SMU, Dempsey, representing domestic steelmakers, said, “We agree that more needs to be done to respond to foreign unfair trade practices and global steel excess capacity that can fuel surges in dumped and subsidized steel imports into the US market.”

He added that these threaten “our industry and the jobs we support.”

Dempsey also urged the Trump administration to “take steps to reinvigorate the Section 232 program to ensure it is meeting the objectives established by President Trump in 2018.”

Demolition derby

Wrecking ball, sledgehammer, bulldozer… so far Trump’s trade policy has definitely taken a cue from his background in construction.

Whether it’s talk of taking back the Panama Canal, or appropriating Greenland, at this point few think of these ideas as mere idle talk.

In these turbulent times, how will companies all along the steel supply chain navigate the uncertainty?

Tampa Steel Conference 2025

If you’re looking for expert folks in a similar predicament who have sage advice… look no further than the Tampa Steel Conference.

We’ll have seasoned veterans from every corner of the steel industry giving their perspective on the current landscape: economic, political… and maybe even philosophical.

Tampa Steel goes from Feb. 2-4. You still have time to register here and enjoy the Florida sunshine.