Trump Doubles Steel, Aluminum Tariffs to 50%

On June 4, President Trump signed an executive order, raising the import tariffs on steel and aluminum from 25% to 50%. This policy took effect at 00:01 AM Eastern Time on the same day. This marks the second time this year that the U.S. has increased tariffs on steel and aluminum, which are crucial raw materials for a wide range of products, from automobiles to canned food.

However, the tariffs on steel and aluminum imports from the United Kingdom remain at 25%. Trump stated that this decision reflects the ongoing trade negotiations between the two countries. The significant increase in tariffs is aimed at securing the future of the U.S. steel industry, according to Trump. Last Friday, during a visit to a U.S. Steel factory in Pennsylvania, Trump announced the tariff hike, claiming it would help protect the domestic steel industry.

Trump emphasized that the increased tariffs would make it impossible for foreign competitors to undercut U.S. producers. "At 25%, they could barely make it over the hurdle, but at 50%, they won't be able to make it at all," he stated. Critics, however, argue that these protective measures could severely harm steel producers outside the U.S., provoke retaliatory actions from trading partners, and impose heavy costs on U.S. steel users.

Many directly affected businesses hope that this tariff policy will be temporary or part of a negotiation strategy by Trump. The U.S. is the world's largest steel importer, with Canada, Brazil, and Mexico being its top three suppliers. It is estimated that approximately 25% of Europe's steel exports go to the U.S.

During his first term, Trump imposed a 25% tariff on steel and a 10% tariff on aluminum. He later granted tax exemptions to several trading partners, including Canada, Mexico, and Brazil. However, in March of this year, Trump ended these exemptions, imposing a 25% tariff on all steel and aluminum imports.

Trump's decision to double the steel and aluminum tariffs to 50% has met with strong opposition from multiple U.S. trading partners. The Canadian Labour Congress President, Bev McDougall, criticized the U.S. government's plan, stating that it is another blow to Canadian workers. The Canadian Chamber of Commerce's President and CEO, Perrin Beatty, argued that disrupting the cross-border steel and aluminum supply chain would be detrimental to both Canada and the U.S., and that doubling the tariffs to 50% contradicts North American economic security.

Australian Prime Minister Anthony Albanese described the U.S. tariff hike as "economic self-harm" that would increase costs for American consumers. The European Union warned that if Trump follows through on his latest tariff threats, such as imposing a 50% tariff on steel and aluminum products, the EU may accelerate retaliatory measures.