U.S. Doubles Tariffs on Steel and Aluminum Imports to 50%
The executive order, effective June 5, exempts the UK while impacting major suppliers including Canada and Mexico.
On June 4, 2025, U.S. President Donald Trump signed an executive order to double the tariffs on steel and aluminum imports from 25% to 50%, effective June 5. The UK has been exempted from this tariff increase due to a bilateral agreement signed on May 8, which acknowledged the UK's measures to address global steel overcapacity.
However, compliance with this agreement will be evaluated by July 9 to determine if the exemption will continue.
The tariff increase primarily affects key suppliers to the United States, including Canada, which exports significant quantities of both metals, as well as Mexico, Brazil, South Korea, Vietnam, and China, the latter being the second-largest exporter of aluminum to the U.S. The executive order justifies the tariff hike as necessary for national security, claiming that it will protect domestic industries from foreign competition that sells surplus steel and aluminum at lower prices.
The measurement, outlined in the executive order, states that the tariffs aim to bolster the struggling domestic steel and aluminum sectors, which have yet to achieve the production capacity utilization necessary for their sustainability and national defense needs.
Trump indicated that the previous 25% tariffs had aided in stabilizing domestic prices, yet more robust action was warranted.
The tariff hike comes amid ongoing negotiations with foreign trading partners, amidst criticism that such moves undermine efforts to reach a negotiated resolution.
The European Union (EU) has expressed discontent, stating that the increase jeopardizes a negotiated settlement, with plans for retaliatory measures in response to the U.S. tariffs still under consideration.
The EU previously outlined a list of approximately 1,600 U.S. products that could face tariffs between 10% and 25% if an agreement is not reached.
This decision follows a series of interactions aimed at reaching a compromise after Trump initially raised tariffs earlier in February and announced the latest increase last week, responding to appeals from industry executives.
The second tariff increase this year reflects Trump’s continued focus on protecting U.S. manufacturing interests.
During his previous administration from 2017 to 2021, he had implemented a similar 25% tariff on steel and a 10% tariff on aluminum, with exceptions negotiated as bilateral relations evolved.
Concerns regarding the new tariffs extend beyond immediate economic implications, with Spanish officials particularly worried that the increased rates would hinder ongoing negotiations between the United States and the EU. Economically, Spain ranks as the tenth largest exporter of steel and twenty-eighth for aluminum to the U.S., with sector representatives warning that the 50% increase may significantly disrupt employment and production.
Simultaneously, relations with China have further soured, with Trump accusing Beijing of violating a recent agreement regarding tariff reductions on rare minerals and other commodities.
China has rejected these allegations and threatened to take firm action in defense of its economic interests.
The U.S.-China trade relationship remains tense, with discussions regarding tariff cancellations stalled after a temporary truce earlier in 2025.
As of 2024, the U.S. was reported to have imported 26.2 million tons of steel, making it the world's largest steel importer outside the EU. The cumulative effect of the new tariffs is anticipated to increase global prices, impacting both industries and consumers.
Following the executive order, the White House has notified trade partners of the upcoming deadline for potential reciprocal tariffs, further amplifying the ongoing trade tensions.
However, compliance with this agreement will be evaluated by July 9 to determine if the exemption will continue.
The tariff increase primarily affects key suppliers to the United States, including Canada, which exports significant quantities of both metals, as well as Mexico, Brazil, South Korea, Vietnam, and China, the latter being the second-largest exporter of aluminum to the U.S. The executive order justifies the tariff hike as necessary for national security, claiming that it will protect domestic industries from foreign competition that sells surplus steel and aluminum at lower prices.
The measurement, outlined in the executive order, states that the tariffs aim to bolster the struggling domestic steel and aluminum sectors, which have yet to achieve the production capacity utilization necessary for their sustainability and national defense needs.
Trump indicated that the previous 25% tariffs had aided in stabilizing domestic prices, yet more robust action was warranted.
The tariff hike comes amid ongoing negotiations with foreign trading partners, amidst criticism that such moves undermine efforts to reach a negotiated resolution.
The European Union (EU) has expressed discontent, stating that the increase jeopardizes a negotiated settlement, with plans for retaliatory measures in response to the U.S. tariffs still under consideration.
The EU previously outlined a list of approximately 1,600 U.S. products that could face tariffs between 10% and 25% if an agreement is not reached.
This decision follows a series of interactions aimed at reaching a compromise after Trump initially raised tariffs earlier in February and announced the latest increase last week, responding to appeals from industry executives.
The second tariff increase this year reflects Trump’s continued focus on protecting U.S. manufacturing interests.
During his previous administration from 2017 to 2021, he had implemented a similar 25% tariff on steel and a 10% tariff on aluminum, with exceptions negotiated as bilateral relations evolved.
Concerns regarding the new tariffs extend beyond immediate economic implications, with Spanish officials particularly worried that the increased rates would hinder ongoing negotiations between the United States and the EU. Economically, Spain ranks as the tenth largest exporter of steel and twenty-eighth for aluminum to the U.S., with sector representatives warning that the 50% increase may significantly disrupt employment and production.
Simultaneously, relations with China have further soured, with Trump accusing Beijing of violating a recent agreement regarding tariff reductions on rare minerals and other commodities.
China has rejected these allegations and threatened to take firm action in defense of its economic interests.
The U.S.-China trade relationship remains tense, with discussions regarding tariff cancellations stalled after a temporary truce earlier in 2025.
As of 2024, the U.S. was reported to have imported 26.2 million tons of steel, making it the world's largest steel importer outside the EU. The cumulative effect of the new tariffs is anticipated to increase global prices, impacting both industries and consumers.
Following the executive order, the White House has notified trade partners of the upcoming deadline for potential reciprocal tariffs, further amplifying the ongoing trade tensions.
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Translated by AI
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