US President Donald Trump announced on Friday, May 31, 2025, his intention to significantly increase tariffs on imported steel, raising them from the current 25 per cent to 50 per cent. The move, declared to take effect on June 4, 2025 (the following Wednesday), is anticipated to elevate costs for global steel producers but is aimed at further securing the United States steel industry and preserving domestic employment.

The announcement was made during a rally in Pennsylvania, reportedly near Pittsburgh at US Steel’s Mon Valley Works plant. During the speech, Trump also referenced a $14.9 billion agreement between Nippon Steel and US Steel, suggesting both the deal and the tariff hike would bolster the steel sector. In a subsequent post on Truth Social, Trump confirmed the new levy would also apply to aluminum imports and would be effective from Wednesday, asserting that American “industries are coming back like never before” and exclaiming, “MAKE AMERICA GREAT AGAIN!” He added, “We don’t want America’s future to be built with shoddy steel from Shanghai – we want it built with the strength and the pride of Pittsburgh!”

Market reactions were immediate, with shares of Cleveland-Cliffs Inc reportedly rising 26 per cent in after-hours trading, as investors foresaw potential for higher profits under the new tariff regime. This tariff escalation follows shortly after Trump accused China of having “totally violated” a trade understanding with the US concerning the rollback of tariffs on critical minerals.

The initial 25 per cent tariffs on most steel and aluminum products were originally introduced in March under Section 232 of the Trade Expansion Act, with national security concerns cited as the justification. The newly announced expanded tariffs will now encompass a broader range of metal products, including items such as stainless steel sinks, gas ranges, frying pans, and door hinges. According to US Census Bureau data, the import value for the 289 affected product categories in 2024 reached $147.3 billion, with steel constituting one-third of this value and aluminum the remainder. This represents a substantial increase compared to Trump's first-term tariffs on Chinese industrial goods, which covered approximately $50 billion worth of annual imports.

Industry analysts project that these new tariffs will likely cause an increase in domestic steel prices, thereby impacting manufacturers and end-users across various sectors. The decision is viewed as an intensification of Trump's trade policies, which have previously affected global markets. Consequently, products utilizing steel and aluminum, such as automobiles and beverage cans, may become more expensive for American consumers.

However, an exception to these tariff hikes has been noted for British steel exports. Sky News reported that British steel is exempt due to a UK-US trade agreement signed earlier in the month. This agreement stipulated that the US “will promptly construct a quota at most favoured nation (MFN) rates” for British steel, aluminum, and derivative products. UK officials reportedly emphasized the significance of this pre-existing deal in shielding their exports from the new tariffs.

The United States imports a significant portion of its steel and aluminum. Approximately a quarter of all steel used in the US is imported, primarily from countries including Mexico, Canada, Japan, South Korea, and Germany. In 2024, the US imported 26.2 million tonnes of steel (excluding the European Union). Specifically, 6.6 million tonnes of steel were imported from Canada, and 3.5 million tonnes from Mexico. Regarding aluminum, the US imported 3.2 million tonnes from Canada in the same year. The texts recall that Trump had previously threatened Canada with 50% levies on imports. In response, the provincial government of Ontario had threatened to charge 25% more for the electricity it supplies to parts of the US. At that time, Canadian Prime Minister Mark Carney (as stated in the provided text) reportedly called the proposed 50% tariffs an “attack” on Canadian workers, families, and businesses.