Trump Plans 50% Tariffs on Steel and Aluminium Imports

WEST MIFFLIN, Pennsylvania: On Friday, U.S. President Donald Trump announced his intention to raise tariffs on imported steel and aluminium from 25 per cent to 50 per cent, intensifying pressure on international steel manufacturers and escalating his trade conflict. "We will be implementing a 25 per cent rise." "We will increase the tariffs on steel imported into the United States from 25 per cent to 50 per cent, which will further strengthen the steel industry in the United States," he stated at a Pennsylvania rally. Trump declared the increased tariffs near Pittsburgh, where he was promoting an accord between U.S. Steel and Nippon Steel. Trump noted that the $14.9 billion agreement, similar to the tariff hike, will assist in preserving jobs for American steel workers. He subsequently shared on social media that the higher tariff would also affect aluminium goods and that it would come into force on Wednesday.

Cleveland-Cliffs Inc. shares skyrocketed 26 per cent following the market's closure as investors anticipated that the new tariffs would enhance its profitability. The increase of steel and aluminium tariffs escalates Trump's global trade conflict and occurred just hours after he charged China with breaching an accord with the U.S. to jointly reduce tariffs and trade limitations on essential minerals. Canada's Chamber of Commerce swiftly criticised the tariff increase as "contrary to North American economic security." "Disrupting the effective, competitive, and dependable cross-border supply chains similar to those in steel and aluminium incurs significant expenses for both nations," stated Candace Laing, the chamber's president. Australia's centre-left administration similarly denounced the tariff hike as "unwarranted and not a gesture from a friend." "According to Trade Minister Don Farrell in a statement, they represent a form of economic self-damage that will negatively affect consumers and businesses that depend on free and fair trade."

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Australia, an essential security partner for the U.S. in the Indo-Pacific, would "persist in its efforts and advocate firmly for the elimination of the tariffs," Farrell stated. Trump addressed the U.S. Steel's Mon Valley Works, a steel facility that represents both the former might and the downturn of U.S. manufacturing strength, as the steel mills and factories in the Rust Belt faced competition from global opponents. Tightly fought Pennsylvania is also a significant reward in presidential elections. According to the Department of Commerce, the U.S. ranks as the largest steel importer globally, not counting the European Union, with 26.2 million tons of steel imports in 2024. Consequently, the new tariffs are expected to raise steel prices universally, impacting both industries and consumers. Tariffs on steel and aluminium were among the first implemented by Trump when he took office again in January. 

In March, a 25 per cent tariff on the majority of steel and aluminium imports to the U.S. was implemented, and he had initially considered a 50 per cent tax on Canadian steel but later retreated. The import duties under the Section 232 national security authority encompass both raw metals and various derivative products, including stainless steel sinks, gas stoves, air conditioner evaporator coils, horseshoes, aluminium frying pans, and steel door hinges. According to Census Bureau data accessed via the U.S. International Trade Commission's Data Web system, the import value for the 289 product categories in 2024 reached $147.3 billion, with approximately two-thirds consisting of aluminium and one-third made up of steel. In comparison, during his initial term, Trump's first two sets of punitive tariffs on Chinese industrial products in 2018 amounted to $50 billion in yearly import value.