The order also targets derived products that use imported steel, subjecting them to tariffs.

U.S. President Donald Trump on Monday decided to substantially raise tariffs on steel and aluminum imports, canceling exemptions and free-trade quotas for major suppliers including Canada, Mexico, Brazil and other countries.

The move could raise the risk of a multi-front trade war.

Trump signed executive orders raising the tariff on aluminum imports to 25% from the previous 10% he imposed in 2018 to help the struggling industry.

The measure reinstates a 25% tariff on millions of tons of steel and aluminum imports that entered the United States duty-free under quota agreements, exemptions and thousands of product exclusions.

The proclamations were extensions of Trump’s 2018 Section 232 national security tariffs to protect steel and aluminum manufacturers. A White House official said the waivers had eroded the effectiveness of those measures.

Trump will also impose a new U.S. rule requiring steel imports to be “melted and poured” and aluminum to be “smelted and cast” in the region to curb imports of minimally processed Chinese steel into the United States.

The order also targets derived products that use imported steel, subjecting them to tariffs.

Trump's trade adviser Peter Navarro said the measures would help U.S. steel and aluminum producers and bolster the country's economic and national security.

"Steel and Aluminum Tariffs 2.0 will end foreign dumping, stimulate domestic production, and secure our steel and aluminum industries as the backbone and pillar of America's economic and national security," he told reporters.

"This isn't just about trade. It's about ensuring that the United States never again has to rely on foreign nations for essential industries like steel and aluminum."

Trump first addressed the steel and aluminum measure on Sunday, adding that he would also announce a new set of reciprocal tariffs later this week, prompting warnings of retaliation from trading partners.