Trump to Double Tariffs on Steel and Aluminum Imports to 50%

US President Donald Trump aims to double tariffs on steel and aluminum imports, raising them from 25% to 50%. This move comes amid ongoing legal challenges to his "reciprocal" tariffs and could further strain relations with key US trade partners, including Canada, Brazil, and Mexico. As the largest steel exporter to the United States, Canada is expected to feel the greatest impact due to previous tensions over similar trade actions. 

Speaking at US Steel’s Mon Valley Works, Trump said the increased tariffs aim to strengthen the US steel industry and protect American jobs. “Our steel and aluminum industries are coming back like never before,” says Trump. According to his announcement, the new 50% tariffs are set to take effect on June 4. 

However, experts at the Pacific Research Institute say that the administration has yet to explain how the original 25% rate was determined, let alone justify doubling it. “They have never provided a rationale. It was just arbitrarily increased,” a spokesperson said.

While steel and aluminum tariffs have historically been implemented as scheduled, policy inconsistency creates uncertainty, discouraging businesses from making long-term investments, says Felix Tintelnot, Economics Professor, Duke University. “Policy volatility discourages companies from making long-term investments in heavy industry,” he says.

While Tintelnot acknowledges the tariffs might boost the US steel sector, he warns of broader economic consequences. “This will raise input costs for industries like automotive and construction, which are already under pressure,” he says.

Global Response

Labor groups in Canada condemn the tariff increase. Marty Warren, Director, United Steelworkers union, calls it “a direct attack on Canadian workers,” warning that thousands of jobs are at risk. Bea Bruske, President, Canadian Labour Congress, describes the decision as “reckless” and warns that it could exclude Canadian metal producers from the US market entirely. In response, Canada’s Prime Minister Mark Carney pledged to accelerate national infrastructure projects to mitigate the economic impact and stimulate growth.

Australia’s Minister for Trade and Tourism, Don Farrell, calls the tariffs “unjustified and not the act of a friend.” The European Union also condemns the move and indicated readiness to impose retaliatory tariffs if no agreement is reached. EU countermeasures could come into force as early as July 14.