President Donald Trump signed a new executive order Tuesday, doubling tariffs on imported steel and aluminum from 25 percent to 50 percent. The tariffs go into effect today, Wednesday.
The new tariff levels took effect at midnight on June 4 and apply to most foreign steel and aluminum imports, with the exception of the United Kingdom. According to the White House, the UK exemption remains in place as both nations continue discussions on duties and quotas under their trade agreement.
Trump first announced the plan during a rally at a U.S. Steel plant in Pennsylvania on May 30, where he told workers, “Nobody is going to be able to steal your industry.” He added, “At 25 percent, they can sort of get over that fence. At 50 percent, they can no longer get over the fence.”
The executive order describes the action as a necessary response to foreign dumping of excess, low-priced metals that undercut U.S. manufacturers and threaten American jobs.
Trump stated the tariffs would “more effectively counter foreign countries that continue to offload low-priced, excess steel and aluminum in the United States market.”
Since returning to the White House in January, President Trump has pursued an aggressive trade policy targeting both adversaries and allies. In April, his administration imposed a blanket 10 percent tariff on most trade partners, with even steeper rates looming as talks continue.
Industry leaders reacted swiftly to the latest announcement. Kevin Dempsey, CEO of the American Iron and Steel Institute, praised the decision. He pointed to China’s steel exports, which have surged to 118 million metric tons in 2024, as a growing threat to U.S. capacity. “This tariff action will help prevent new surges in imports that would injure American steel producers and their workers,” Dempsey said.
Steel stocks jumped on the news, with Cleveland-Cliffs up 23 percent, and Steel Dynamics and Nucor both gaining 10 percent shortly after the announcement.
The Aluminum Association, while appreciative of the administration’s focus on domestic production, cautioned that tariffs alone are not a long-term solution. The group called for more reliable energy sources and a stable trade framework to support investment across the industry.
Meanwhile, international pushback is already mounting. The European Union warned it may retaliate, calling the sudden hike a blow to ongoing negotiations.
The impact of the tariffs has also been felt north of the border. Canadian steel and aluminum producers have faced the 25 percent tariff rate since early March, leading to layoffs, reduced profits, and increased costs for manufacturers and consumers alike.
Algoma Steel in Ontario reported paying over $10 million in tariffs in just two weeks, with its CEO noting the company is now reducing reliance on U.S. revenue, which once made up 60 percent of its business.
The Canadian Steel Producers Association warned that raising tariffs to 50 percent would cause “mass disruption and negative consequences across our highly integrated steel supply chains.”
Despite criticism from abroad, the Trump administration maintains that national security and economic independence remain the top priorities. “Increasing the previously imposed tariffs will provide greater support to these industries and reduce or eliminate the national security threat,” the president’s order stated.
With the steeper tariffs now in effect and a July deadline approaching for other paused increases, pressure is rising on foreign governments to come to the table.