Donald Trump's 50 per cent steel and aluminium tariffs have come into effect
Tariffs placed on steel and aluminium products imported into the United States by President Donald Trump have increased from 25 per cent to 50 per cent, in a move that could significantly impact businesses ranging from car manufacturers to home builders.
Foreign-made steel and aluminium are used in the US to make household products like soup cans and paper clips, as well as big-ticket items like stainless steel refrigerators and cars.
Economists have warned that such heightened levies could significantly squeeze the wallets of both companies and shoppers alike, but Mr Trump argues that his latest import taxes are necessary to protect US industries.
The 50 per cent tariffs went into effect just after the clock struck midnight on Wednesday, local time (2pm AEST Wednesday).
The two metals had previously faced 25 per cent tariffs worldwide since mid-March when the president's order to remove steel exemptions and raise aluminium's levy from his previously imposed 2018 import taxes went into effect.
Steel and aluminium imported from the United Kingdom have been exempted from the latest tariff increase after a recent trade deal was reached between the two countries.
The US president says it's all about protecting US industries.
He reiterated that argument on Friday, when he first announced the 50 per cent tariff on imported steel during a visit with steelworkers in Pennsylvania, where he also discussed a "planned partnership" between US Steel and Japan's Nippon Steel.
In his speech at US Steel's Mon Valley Works–Irvin Plant in suburban Pittsburgh, Mr Trump said the tariff hike would "further secure the steel industry in the US".
Shortly after, he took the same tone when sharing plans to also raise tariffs on imported aluminium.
In Tuesday's proclamation, Mr Trump also said the higher tariffs would ensure that imported steel and aluminium would "not threaten to impair the national security".
A range of US businesses that rely on foreign-made steel and aluminium have already begun feeling the impacts of Mr Trump's previously imposed levies, but the latest hikes could drive up costs even more.
The metals are used in a range of products like washing machines, consumer electronics and cars, while much of the auto industry relies on a global supply chain.
In the grocery aisle, steel and aluminium are ubiquitous in the packaging for many foods, including canned tuna, soup and nuts. Experts warn that hiking import taxes on these materials could lead to higher grocery prices overall, further straining consumers' wallets.
The aluminium and metal tariffs also carry wider implications for construction and transportation as a whole, as many key building parts and materials are made with these metals.
Economists have also warned of spillover impacts. Even if a product isn't directly packaged in steel or aluminium, there could be higher costs to build the shelf it's sold on, or the truck used to transport it to the store.
Steel prices have already climbed 16 per cent since Mr Trump became president in mid-January, according to the government's Producer Price Index.
As of March 2025, steel costs $US984 ($1,516) a metric ton in the US, significantly higher than in Europe or China, according to the US Commerce Department.
AP
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