US President Donald Trump has announced plans to increase tariffs on nearly all foreign steel and aluminium imports to 50 per cent starting Wednesday, a move expected to affect industries from automakers to homebuilders, and likely to push up costs for consumers.
Currently, steel and aluminium imports are taxed at 25 per cent, a rate imposed in March this year when Trump removed steel exemptions and raised aluminium tariffs from his initial 2018 import taxes.
In a proclamation issued on Tuesday, Trump confirmed that from midnight Wednesday, the US will impose a 50 per cent levy on almost all steel and aluminium imports, with the exception of those from the United Kingdom. The UK’s imports will continue to face a 25 per cent tariff under a recent bilateral trade agreement.
Trump defended the hike as necessary to protect American industries. “The tariff hike would further secure the steel industry in the US,” he stated during a visit to US Steel’s Mon Valley Works in Pennsylvania last Friday, where he also discussed a “planned partnership” between US Steel and Japan’s Nippon Steel.
In Tuesday’s proclamation, Trump added that the increased tariffs would ensure imported metals “will not threaten to impair the national security.” He argued the move was designed to “more effectively counter foreign countries that continue to offload low-priced, excess steel and aluminium in the United States.”
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Industry responses have been mixed. While some analysts credit the initial tariffs with strengthening domestic production, others caution that doubling the levies risks complicating industry adjustment.
David McCall, international president of the United Steelworkers union, said, “While tariffs, used strategically, serve as a valuable tool in balancing the scales, it’s essential that we also pursue wider reforms of our global trading system.” He emphasised the need for collaboration with allies like Canada to “contain the bad actors.”
Matt Meenan, vice president of external affairs at the Aluminium Association, welcomed the focus on US industry but noted, “tariffs alone will not increase US primary aluminium production. We also need consistent, predictable trade and tariff policy to plan for current and future investment.”
The increased tariffs are likely to push up costs across sectors reliant on steel and aluminium. These metals are used in household goods such as soup cans and paper clips, large appliances, vehicles and their repair parts, as well as packaging for many food products. The levies may result in higher prices for both manufacturers and consumers.
Furthermore, the construction and transportation industries could feel the effects as many essential components rely on steel and aluminium. Economists warn that increased costs may ripple through the economy, affecting products indirectly connected to these metals.
Steel prices have already risen 16 per cent since Trump took office in January 2025, according to the US Producer Price Index. As of March, US steel cost USD 984 per metric tonne, compared to USD 690 in Europe and USD 392 in China.
Exceptions to the 50 per cent tariffs apply only to the UK, under a trade deal signed on 8 May. Trump acknowledged the agreement in his proclamation and stated the tariffs on British imports would remain at 25 per cent for now. However, the rate could be revised after 9 July if the US deems the UK has not honoured the framework.
The tariff increase may provoke retaliatory measures from trade partners. The European Union, which previously proposed countermeasures against US tariffs, has delayed such actions until mid-July in the hope of reaching a trade agreement, but has warned it will proceed if talks fail.
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