President Donald Trump on Monday announced sweeping 25% tariffs on all steel and aluminum imports into the United States. The new levies, set to take effect on March 4, come on top of existing metals duties, marking another aggressive step in Trump’s longstanding efforts to cut trade deficits and push for greater economic protectionism.

Speaking from the Oval Office, Trump framed the move as a necessary correction to years of unfair trade practices, asserting that foreign producers had been exploiting American industries.

“Today, I’m simplifying our tariffs on steel and aluminum … This is the beginning of making America rich again,” Trump declared as he signed dual executive orders mandating the tariffs. “No exceptions, no nothing.”

Trump, who has long argued that unfair trade practices have weakened the U.S. manufacturing base, insisted that the tariffs would bring back jobs in the steel and aluminum industries.

“We were being pummeled by both friend and foe alike,” he said. “It’s time for our great industries to come back to America.”

A Repeat of 2017 – But Harsher

This is not the first time Trump has targeted industrial metals with trade barriers. Early in his first term, in 2017, he imposed 25% tariffs on steel and 10% on aluminum. However, after facing backlash from major trading partners, he granted exemptions to some allied nations, including Canada, Mexico, Australia, Brazil, South Korea, and Argentina. The latest tariffs, however, appear to eliminate those exemptions, ensuring that all steel and aluminum imports will now be subject to the full 25% duty.

The move is widely expected to trigger retaliatory actions from affected countries, many of whom vehemently opposed the previous round of tariffs. Trade experts warn that the impact could be more severe this time, as the global economic environment remains fragile, with lingering concerns about inflation and slowing growth.

Although Trump insists that the tariffs will boost domestic production, economic analysts warn that they could backfire, increasing costs for U.S. manufacturers and consumers while straining international trade relations.

Frank Lavin, a former U.S. ambassador to Singapore, told CNBC’s “Street Signs Asia” that the tariffs are “not simply symbolic but punitive and will cost jobs in the U.S.” Lavin cautioned that the move could harm the U.S. auto industry, which heavily relies on imported steel and aluminum, and could push up prices across multiple sectors.

“We’re in for a bit of bad news in the near term,” Lavin said. “It will obligate other countries to respond. So we’re going to see deterioration, and I think worst of all, from Mr. Trump’s point of view, is we’re going to see a little bit of inflationary pressure as well.”

The timing of the tariff announcement is also significant, as it could affect Federal Reserve policy. Lavin noted that the potential inflationary impact of the tariffs might force the U.S. Federal Reserve to hold off on rate cuts, a move that could dampen economic growth.

“Trump was angry at the U.S. Fed last time when there was no easing. Well, there’s not going to be any easing next time either, if he keeps these tariffs in place,” Lavin warned.

Is Trump Using Tariffs as a Bargaining Chip?

Some analysts believe Trump could be using the tariffs as leverage in trade negotiations, particularly with Canada and Mexico, to push for concessions on issues like border security and trade agreements.

However, Lavin dismissed the idea that Trump’s tariff strategy would yield quick results, pointing out that the broad, global nature of the steel and aluminum duties would make them harder to resolve through negotiation.

“When you’re talking about a global tariff on steel and aluminum and a tariff on China, you’re not going to see a quick response and a quick resolution of these matters,” he said.

Trump, however, remains defiant, emphasizing his “reciprocal” stance on tariffs, signaling that the U.S. is ready to match or exceed any duties imposed by other countries.

“If they charge us, we charge them. If they’re at 25 [percent], we’re at 25. If they’re at 10, we’re at 10. And if they’re much higher than 25, then that’s where we are at too,” Trump said.

Potential Global Trade Disruptions

With global supply chains already under stress, economists warn that Trump’s new tariffs could escalate trade tensions and further disrupt international markets. Countries affected by the tariffs may retaliate by imposing their own duties on American exports, leading to a tit-for-tat trade war.

Major U.S. trading partners, including the European Union and China, have not yet responded officially, but officials in Brussels and Beijing have previously threatened to retaliate against any new American tariffs.

If retaliation occurs, U.S. exporters, particularly in the agricultural and manufacturing sectors, could suffer. In 2018, during the last major trade war under Trump, China responded to U.S. tariffs by targeting American soybeans and other agricultural products, dealing a significant blow to American farmers.

Uncertainty in the Markets

Following Trump’s announcement, markets reacted with caution, with steel and aluminum stocks seeing temporary gains, but broader market indices showing increased volatility. Investors remain wary of how the tariffs could affect corporate earnings and whether the move will further strain relations between the U.S. and its allies.

Elon Musk, along with a consortium of investors, has submitted an unsolicited offer to take control of OpenAI, valuing the artificial intelligence startup at $97.4 billion.

The bid, which was confirmed by CNBC on Monday, seeks to acquire the nonprofit entity that oversees OpenAI, with Musk and his backers arguing that the company has strayed from its original mission. Musk, who co-founded OpenAI in 2015 as a nonprofit research lab focused on AI safety, has been openly critical of its transformation into a for-profit entity, particularly its partnership with Microsoft.

Musk’s attorney, Marc Toberoff, formally submitted the offer on Monday, stating that the proposed funds would be used exclusively to further OpenAI’s original charitable mission. In a statement sent to CNBC, Toberoff emphasized the need for OpenAI to return to its roots, saying, “It’s time for OpenAI to return to the open-source, safety-focused force for good it once was.”

The investor group backing Musk’s bid includes several of his long-time allies and financial supporters across his various ventures. Among them are Baron Capital Group, Valor, Atreides, Vy Capital, Joe Lonsdale’s 8VC, and an investment vehicle led by Endeavor CEO Ari Emanuel. The bid, however, comes amid heightened tensions between Musk and OpenAI CEO Sam Altman, with the two engaged in a bitter public and legal feud over the company’s direction.

OpenAI quickly rejected Musk’s bid, with Altman ridiculing the offer in a post on X (formerly Twitter). In response to the $97.4 billion offer, Altman quipped, “No thank you, but we will buy Twitter for $9.74 billion if you want.” The comment was a pointed jab at Musk’s troubled $44 billion acquisition of Twitter, which has since been rebranded as X. The platform has struggled financially under Musk’s leadership, with declining user engagement and a loss of advertisers.

Musk, known for his unfiltered social media presence, fired back at Altman by calling him a “swindler.” In another response to a different user, he referred to him as “Scam Altman.” The public exchange underlines the deepening hostility between the two former OpenAI co-founders.

Musk’s bid to acquire OpenAI comes at a time when the company has solidified its position as a dominant force in artificial intelligence. Since the launch of ChatGPT in 2022, OpenAI has attracted billions in investment, spurring a race among tech giants to develop cutting-edge AI technologies. The company is now on track for an even higher valuation, with reports indicating that SoftBank is close to finalizing a $40 billion investment in OpenAI, pushing its estimated worth to $260 billion.

Microsoft, OpenAI’s largest backer, has invested more than $13 billion in the company, a partnership that has fueled Musk’s grievances. He has accused OpenAI of essentially becoming a subsidiary of Microsoft, despite its nonprofit origins. His lawsuit against OpenAI claims that the organization has violated its founding agreement by transitioning into a profit-driven enterprise and forming a close financial relationship with a major corporate entity.

Adding a political dimension to the unfolding saga, OpenAI has also partnered with SoftBank and Oracle in a project called Stargate, which was announced by President Donald Trump after his inauguration. The initiative is designed to funnel billions of dollars into AI infrastructure in the United States, further entrenching OpenAI’s influence in the global AI industry.

The project’s announcement under Trump’s administration raises questions about whether OpenAI is aligning itself with certain political and corporate interests, a concern that Musk has repeatedly raised.

Musk’s bid for OpenAI, if successful, could lead to a dramatic restructuring of the AI industry. Reports suggest that xAI, Musk’s own artificial intelligence startup, could merge with OpenAI in the event of an acquisition. Such a move would position Musk at the helm of one of the most powerful AI research organizations in the world, giving him significant leverage over the future of artificial intelligence development.

Beyond the battle for control, regulatory hurdles may also determine OpenAI’s future. On January 7, Musk’s legal team sent a letter to the attorneys general of California and Delaware urging them to open the bidding process for OpenAI to external investors. By doing so, Musk aims to challenge OpenAI’s current trajectory, which heavily favors SoftBank’s investment and Microsoft’s influence.

Musk’s latest move underlines his determination to reclaim a role in shaping the company he once co-founded. His lawsuit against OpenAI, coupled with his aggressive takeover attempt, illustrates his belief that the company has abandoned its commitment to open-source AI research and transparency.

However, critics argue that Musk’s motivations may not be purely altruistic. With his own AI startup, xAI, attempting to gain ground in the AI arms race, some analysts speculate that his bid to acquire OpenAI is as much about eliminating a competitor as it is about restoring its nonprofit values.

The battle for OpenAI is now unfolding on multiple fronts—legal, financial, and personal. With OpenAI standing firm against Musk’s advances, Microsoft deepening its ties to the company, and SoftBank poised to inject billions into its operations, Musk’s takeover bid has slim chances.