Trump Hikes Steel and Aluminum Tariffs to 50%, Spares UK

President Trump doubled tariffs on steel and aluminum imports from 25% to 50%, effective June 4, according to a proclamation he signed on Tuesday. The United Kingdom is the only country exempt from the hike.

President Trump doubled tariffs on steel and aluminum imports from 25% to 50%, effective June 4, according to a proclamation he signed on Tuesday. The United Kingdom remains the only country exempt from this hike. This move comes amidst ongoing legal challenges and escalating trade tensions, particularly with China and the EU.

The escalation follows Trump's earlier claims that China had "violated" its trade agreement with the US, sparking a backlash from the Chinese government. The US-China detente, reached earlier this month, appears fragile as trade-related and other tensions persist.

The White House has vowed to take its appeal to the Supreme Court if necessary, following a federal appeals court decision that temporarily allowed Trump's tariffs to stay in effect. This decision came after the US Court of International Trade blocked the tariffs, deeming the method used to enact them "unlawful." The appeals court granted a temporary administrative stay, allowing time for legal arguments and filings to be reviewed.

The tariffs have also sparked concern from the OECD, which warned that the global economy is slowing down due to trade tensions. The OECD cut its forecasts for most G20 economies and emphasized the need to lower trade barriers to boost investment and stabilize prices.

US trade negotiations with India and the EU have continued this week, despite the legal uncertainty surrounding Trump's tariffs. The EU has expressed strong regret over the tariff hike, stating it undermines planned trade talks. Meanwhile, the strain of Trump's tariffs has taken a toll on the friendly cross-border relationship between Windsor, Ontario, and Detroit, Michigan.

The legal saga surrounding Trump's tariffs continues, with the USCAFC setting a briefing schedule through to June 9, 2025, for parties to lay out their arguments on appeal. For the time being, Canadian businesses impacted by the 25% duty on Canadian imports prior to May 28, 2025, will continue to feel the effects of those tariffs.

The ongoing legal challenges and trade tensions highlight the volatility of the US trade landscape, presenting significant challenges and uncertainties for businesses engaged in cross-border exports and supply chains.

References:

[1] https://uk.finance.yahoo.com/news/trump-tariffs-live-updates-trump-says-he-is-doubling-tariffs-on-steel-imports-to-50-191201004.html
[2] https://finance.yahoo.com/news/live/trump-tariffs-live-updates-trump-pushes-for-trade-deals-with-steel-aluminum-duties-set-to-double-191201213.html
[3] https://www.dentons.com/en/insights/newsletters/2025/june/2/trump-2-0-navigating-change-in-canada/appeals-court-halts-united-states