Key points
- US tariffs on imported steel and aluminium will rise from 25pc to 50pc starting Wednesday
- UK remains exempt from the hike
- EU has warned of possible retaliation
- US is the biggest importer of steel in the world
ISLAMABAD: The United States will double its tariffs on imported steel and aluminium starting Wednesday, according to the White House, as it published an order signed by President Donald Trump.
According to AFP, the move marks a latest salvo in Trump’s trade wars, bringing levies on both metals from 25 per cent to 50 per cent.
President Trump just signed a proclamation raising tariffs on steel and aluminum imports by 50% to protect U.S. steel and national security.🇺🇸
THE GOLDEN AGE IS HERE! pic.twitter.com/TP32u0M4dR
— The White House (@WhiteHouse) June 3, 2025
US President Donald Trump also shared a White House post on his X account.
— Donald J. Trump (@realDonaldTrump) June 2, 2025
According to AFP, the tariffs on metal imports from the UK will remain at the 25 per cent rate, while both sides work out duties and quotas in line with the terms of their earlier trade pact.
Overall, the aim is to “more effectively counter foreign countries that continue to offload low-priced, excess steel and aluminium in the United States,” according to the order, which added that these undercut the competitiveness of US industries.
“Greater support”
“Increasing the previously imposed tariffs will provide greater support to these industries and reduce or eliminate the national security threat posed by imports of steel and aluminium articles and their derivative articles,” the order added.
Trump announced his decision to hike tariffs on steel and aluminium when he addressed workers at a US Steel plant in Pennsylvania last week.
“Nobody is going to be able to steal your industry,” he said at the time.
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“At 25 per cent, they can sort of get over that fence. At 50 per cent, they can no longer get over the fence,” he added.
The move, however, fans tensions with key US trading partners.
Nobody is going to be able to steal your industry. At 25 per cent, they can sort of get over that fence. At 50 per cent, they can no longer get over the fence.” – United States President Donald Trump
The European Union warned over the weekend that it was prepared to retaliate against levies.
“Undermines ongoing efforts”
It said that the sudden announcement “undermines ongoing efforts to reach a negotiated solution” between the bloc and the United States.
Already, Washington is in talks with various countries after Trump imposed sweeping 10 per cent tariffs on almost all partners in April and announced even higher rates for dozens of economies.
While the steeper levels have been paused during ongoing negotiations, this halt expires in early July — adding to urgency to reach trade deals.
Since returning to the presidency in January, Trump has imposed sweeping tariffs on allies and adversaries alike in moves that have shaken financial markets.
He has also imposed tariffs on sector-specific imports such as autos, apart from targeting steel and aluminum.
Highly vulnerable Mexico
Mexico will request an exemption from the higher tariff, Economy Minister Marcelo Ebrard said, arguing that it is unfair because the United States exports more steel to Mexico than it imports.
“It makes no sense to put a tariff on a product in which you have a surplus,” Ebrard said.
Mexico is highly vulnerable to Trump’s trade wars because 80 per cent of its exports go to the United States, its main trading partner, according to AFP.
Biggest importer of steel
The US is the biggest importer of steel in the world, after the European Union, getting most of the metal from Canada, Brazil, Mexico and South Korea, according to the US government.
According to BBC, during his first term, Trump imposed tariffs of 25 per cent on steel and 10 per cent on aluminium, citing a law that gives him authority to protect industries considered vital to national security.
But many imports ultimately escaped the duties after the US struck trade deals with allies and granted exemptions to certain imports at the request of firms.
Trump ended those carve-outs in March, saying he was unhappy with the way the protections had been weakened.
