AsianFin -- U.S. President Donald Trump officially raised tariffs on all steel and aluminum imports to 25% on Wednesday, asserting that the move would bolster U.S. factory jobs. This decision comes amid ongoing market volatility and growing concerns about a potential economic slowdown, fueled by Trump's fluctuating tariff policies.

The new tariffs eliminate all exemptions previously granted under the 2018 metals tariffs and increase the aluminum tariff from 10%. These measures, stemming from a February directive, are part of Trump's broader strategy to reshape global trade dynamics. The U.S. president has already imposed separate tariffs on Canada, Mexico, and China, with plans to extend "reciprocal" tariffs to imports from the European Union, Brazil, and South Korea starting April 2.

Speaking to CEOs at the Business Roundtable on Tuesday, Trump claimed that the tariffs are encouraging companies to invest in U.S. manufacturing. Despite an 8% drop in the S&P 500 over the past month due to fears of slowing economic growth, Trump remains steadfast, arguing that higher tariffs are essential to bringing factories back to the U.S.

“The higher the tariffs, the more likely companies will build here,” Trump told the group. “The ultimate win is when they move into our country and create jobs. That’s a bigger victory than the tariffs themselves, but the tariffs will also generate significant revenue for the country.”

Earlier on Tuesday, Trump had threatened to impose a 50% tariff on steel and aluminum from Canada. However, he opted to maintain the 25% rate after Ontario suspended plans to levy a surcharge on electricity sold to Michigan, Minnesota, and New York.

The move underscores Trump's aggressive trade policies, which continue to stir both domestic and international debate as businesses and markets grapple with the implications of escalating trade tensions.