Trump plans to double steel, aluminium tariffs to 50%
WEST MIFFLIN, Pennsylvania: US President Donald Trump on Friday (May 30) said he planned to increase tariffs on foreign imports of steel and aluminium to 50 per cent from 25 per cent, ratcheting up pressure on global steel producers and deepening his trade war.
"We're going to bring it from 25 per cent to 50 per cent – the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States," he said at a rally in Pennsylvania.
Trump announced the tariff increase on steel products at a speech given just outside of Pittsburgh, Pennsylvania, where he was talking up an agreement between Nippon Steel and US Steel. Trump said the US$14.9 billion deal, like the tariff increase, will help keep jobs for steel workers in the US.
He later posted on social media that the increased tariff would also apply to aluminium products and that it would take effect on Wednesday.
Shares of steelmaker Cleveland-Cliffs Inc surged 26 per cent after the market close as investors bet the new levies will help its profits.
The doubling of steel and aluminium levies intensifies Trump's global trade war and came just hours after he accused China of violating an agreement with the US to mutually roll back tariffs and trade restrictions for critical minerals.
Canada's Chamber of Commerce quickly denounced the tariff hike as "antithetical to North American economic security".
"Unwinding the efficient, competitive and reliable cross-border supply chains like we have in steel and aluminium comes at a great cost to both countries," Candace Laing, president of the chamber, said in a statement.
Trump spoke at US Steel's Mon Valley Works, a steel plant that symbolises both the one-time strength and the decline of US manufacturing power as the Rust Belt's steel plants and factories lost business to international rivals. Closely contested Pennsylvania is also a major prize in presidential elections.
The US is the world's largest steel importer, excluding the European Union, with a total of 26.2 million tons of imported steel in 2024, according to the Department of Commerce. As a result, the new tariffs will likely increase steel prices across the board, hitting industry and consumers alike.
Steel and aluminium tariffs were among the earliest put into effect by Trump when he returned to office in January. The tariffs of 25 per cent on most steel and aluminium imported to the US went into effect in March, and he had briefly threatened a 50 per cent levy on Canadian steel but ultimately backed off.
Under the so-called Section 232 national security authority, the import taxes include both raw metals and derivative products as diverse as stainless steel sinks, gas ranges, air conditioner evaporator coils, horseshoes, aluminium frying pans and steel door hinges.
The 2024 import value for the 289 product categories came to US$147.3 billion, with nearly two-thirds aluminium and one-third steel, according to Census Bureau data retrieved through the US International Trade Commission's Data Web system.
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