The move, set to take effect on June 4, is expected to raise costs for global steel producers and expand the scope of his trade actions.
US President Donald Trump on Friday said he would raise tariffs on imported steel to 50 per cent, up from the current 25 per cent. The move, set to take effect on June 4, is expected to raise costs for global steel producers and expand the scope of his trade actions.
“We are going to be imposing a 25 per cent increase. 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,” Trump said at a rally in Pennsylvania.
Reuters reported that the announcement was made during a speech near Pittsburgh, where Trump also discussed a $14.9 billion agreement between Nippon Steel and US Steel. He said both the deal and the tariff hike would help preserve employment in the steel sector.
Impact on markets and global trade
Following the announcement, shares of Cleveland-Cliffs Inc rose 26 per cent in after-hours trading as investors anticipated higher profits under the new tariff regime.The decision comes shortly after Trump accused China of breaching a trade understanding with the US regarding the rollback of tariffs on critical minerals.
Trump made the announcement at US Steel’s Mon Valley Works plant in Pennsylvania, a state seen as electorally significant. The site has long been associated with the rise and decline of domestic manufacturing.
The 25 per cent tariffs on most steel and aluminium products were first introduced in March under Section 232 of the Trade Expansion Act, citing national security concerns. The expanded tariffs now include a range of metal products, such as stainless steel sinks, gas ranges, frying pans, and door hinges.According to US Census Bureau data, the 2024 import value for the 289 affected product categories reached $147.3 billion — with steel accounting for one-third and aluminium the remainder.By comparison, Trump’s initial two rounds of tariffs on Chinese industrial goods during his first term covered $50 billion worth of annual imports.
In 2024, the US imported 26.2 million tonnes of steel, excluding the European Union. Industry analysts expect the new tariffs to lead to increased steel prices domestically, affecting manufacturers and end-users.
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