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Trump Imposes 25% Steel & Aluminum Tariffs

Tariffs are back after President Donald Trump announced that he will apply a 25% levy on steel and aluminum imports, building on the duties he first implemented and paused earlier this month.

The move reiterates the 25% tariff on steel Trump first proposed in his previous term but increases the proposed duties on aluminum from 10%. Administration officials say they aim to protect domestic industries they view as critical to national security. Critics, however, warn of increased costs for US businesses that depend on metals imports, from construction firms to automotive manufacturers.

No surprise but Canada and Mexico are among the major suppliers poised to feel the brunt of these tariffs. Data shows that Canada alone provides 3.2 million metric tons of aluminum for US domestic consumption, dwarfing other exporting nations such as the United Arab Emirates and China.

You can read more on the matter here.

What’s going on?

• Trump Pauses Foreign Bribery Law, Affecting Adani Group Case (theDeepDive)

• Trump threatens Canadian cars with tariffs up to 100% (Global)

• Canada Keeps Supply Management Despite Push to Remove Trade Barriers (theDeepDive)

• Quebec, supplier of most of America's aluminum, finds itself in Trump's crosshairs (NP)

• Trump Open to Sending Prisoners to El Salvador (theDeepDive)

• Trump and Jordan’s King Abdullah set for tense meeting on Gaza’s future (Globe)

• Is Trump Targeting The Treasury Next? (theDeepDive)

• Vance Warns U.S. Allies to Keep AI Regulation Light (WSJ)

• Altman Rejects Musk’s $97B OpenAI Acquisition Bid: “We’ll Buy Twitter For $9.74B” (theDeepDive)

• Shopify takes down Ye website selling swastika shirts after Super Bowl ad (CNBC)

What’s the latest?

• Coca-Cola: Coca-Cola plans to increase plastic bottle use if Trump’s 25% aluminum tariffs take effect next month. CEO James Quincey downplayed the financial impact but said Coke would adjust packaging strategies to maintain affordability. Aluminum is more recyclable but costlier than PET plastic, which Coke already relies on heavily. Despite previous efforts to reduce plastic waste, the company has been Greenpeace’s "worst polluter" for six years and recently scaled back its sustainability goals.

• Shopify: Shopify reported Q4 revenue of $2.81 billion, surpassing expectations of $2.73 billion, but missed on earnings at 39 cents per share versus the expected 43 cents. Gross merchandise volume reached $94.5 billion, exceeding the forecasted $93 billion. Net income nearly doubled to $1.3 billion, up from $657 million a year ago. The company expects Q1 revenue growth in the mid-20% range and increased operating expenses of 41%-42% of revenue.

• AI: ScorePlay, an AI-powered sports media platform, raised $13 million in Series A funding, bringing total funding to $20 million. Investors include Alexis Ohanian’s Seven Seven Six, NBA star Giannis Antetokounmpo, and Nico Rosberg. The platform, used by over 200 sports organizations, enables rapid content tagging and distribution, supporting leagues like the NBA, NHL, and MLS. ScorePlay reports threefold year-over-year growth and is already profitable.

• The Fed: Federal Reserve Chair Jerome Powell reaffirmed the Fed’s cautious approach to rate cuts, emphasizing that inflation remains above the 2% target and the economy is strong. The Fed held its benchmark rate at 4.25%-4.5% in January and is expected to keep rates steady until at least summer 2025. Powell reiterated that the Fed does not set trade policy but will respond to economic shifts, including Trump’s tariff plans. He also noted that mortgage rates remain high due to long-term bond yields rather than direct Fed policy.

• Tariffs: The U.S. will impose 25% tariffs on Canadian steel and aluminum starting March 12, impacting $35 billion in exports (1% of Canada’s GDP). Business leaders urge the Canadian government to respond with counter-tariffs and economic reforms. The Aluminium Association of Canada warns the tariffs will raise costs for U.S. industries like automotive and defense. Quebec and Ontario are the most exposed provinces, given their heavy reliance on U.S. exports.

Bell Q4 earnings

The stock market and stuff

• Shopify Shares Drop Amid Q4 2024 Estimates Beat (theDeepDive)

• Goldman Sachs ends IPO diversity policy citing legal developments (Reuters)

• Coffee Falls Most in Two Months But Remains Above $4 a Pound (Bloomberg)

• Why Does Coinbase CEO Brian Armstrong Want CFPB Gone?p (theDeepDive)

In the juniors

• Aya Gold & Silver Reports 383,515 Silver Ounces Produced In January Following Expansion (theDeepDive)

• Frontera, CGX Lose Guyana Petroleum Prospecting License (theDeepDive)

• Liberty Gold To Spin Out Antimony Asset Into New US-Focused Explorer (theDeepDive)

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