US President Donald Trump recently announced plans to elevate tariffs on imported steel and aluminium from 25% to a staggering 50%. This move is poised to exert additional pressure on global steel manufacturers and intensify the ongoing trade conflict.
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“We are implementing a 25% increase in tariffs,” Trump declared at a rally in Pennsylvania, emphasizing the decision’s significance for American steelworkers. “This will further secure the steel industry in the United States,” he noted.
In the vicinity of Pittsburgh, where he unveiled the new tariffs, Trump spoke enthusiastically about a deal between Nippon Steel and US Steel, highlighting its potential to safeguard American jobs. He remarked, “This $14.9 billion agreement, much like the tariff increase, is designed to protect our steel workers.”
Shortly after, Trump took to social media to confirm that the increased tariffs would extend to aluminium products and that they would take effect on Wednesday.
Following this announcement, shares of Cleveland-Cliffs Inc, a steel manufacturer, surged by 26% in after-hours trading, as investors anticipated that the new tariffs would bolster profits.
However, this escalation in tariffs has drawn swift criticism. Canada’s Chamber of Commerce labeled the increase “antithetical to North American economic security.” Candace Laing, the chamber’s president, stressed, “Unwinding the reliable cross-border supply chains we have in steel and aluminium comes at a significant cost to both countries.”
Australia’s center-left government also voiced opposition, calling the tariff hike “unjustified and not the act of a friend.” Trade Minister Don Farrell remarked, “These measures are acts of economic self-harm that ultimately hurt consumers and businesses reliant on free and fair trade.”
The United States, which holds the title of the world’s largest steel importer—excluding the European Union—imported a total of 26.2 million tons of steel in 2024, according to the Department of Commerce. As a result, these new tariffs are likely to drive up steel prices, impacting both industry and consumers alike.
Trump initially instituted tariffs of 25% on a wide array of steel and aluminium products in March, shortly after taking office. While he briefly suggested a 50% levy on Canadian steel, he ultimately receded from that threat. The tariffs, enacted under the Section 232 national security authority, cover both raw materials and an array of manufactured products, ranging from stainless steel sinks to aluminium frying pans.
In total, the import value for the 289 product categories affected in 2024 is projected to reach $147.3 billion, with nearly two-thirds attributed to aluminium and one-third to steel. Comparatively, Trump’s first two rounds of punitive tariffs on Chinese industrial goods during his first term amounted to $50 billion in annual import value.
As the global trade landscape shifts, many will be watching closely to see how these heightened tariffs transform the industry and affect everyday consumers.
Edited By Ali Musa
Axadle Times International – Monitoring.
