On Wednesday local time, US President Trump signed an executive order raising import tariffs on steel and aluminum from 25% to 50%. The tariff policy will take effect from 00:01 a.m. Eastern Time on June 4 .
This marks the second time the US has increased tariffs on steel and aluminum imports since March this year. Steel and aluminum are key raw materials for a wide range of products, from automobiles to canned foods
. However, the tariffs on steel and aluminum imported from the UK will remain at 25% . Trump stated that this reflects the ongoing trade negotiations between the UK and the US
. Trump said that the significant increase in tariffs on steel and aluminum imports aims to safeguard the future of the US steel industry .
Last Friday, during a visit to a US Steel plant in Pennsylvania, Trump announced that he would raise tariffs on steel and aluminum imports from the current 25% to 50%, claiming that this move would help protect the domestic US steel industry
. Trump said, "This means no one can take your industry away. When the tariff was 25%, they could barely get over that hurdle. At 50%, they'll never make it."
However, critics have said that these protective measures could cause severe damage to steel producers outside the US, trigger retaliation from trading partners, and impose heavy costs on US steel users
. Many businesses directly affected are hoping that the tariff policy will be temporary or part of Trump's negotiating strategy
. The US is the world's largest importer of steel, with Canada, Brazil, and Mexico being its top three steel suppliers. It is estimated that around 25% of Europe's steel exports go to the US
. During his first term, Trump also imposed a 25% tariff on steel and a 10% tariff on aluminum, but later granted duty-free quotas to several trading partners, including Canada, Mexico, and Brazil. Trump terminated these exemptions in March this year and began imposing a 25% tariff on all imported steel and aluminum
.Strong Opposition from US Trading Partners
Over the past few days, several US trading partners have expressed strong dissatisfaction and opposition to Trump's decision to double tariffs on steel and aluminum to 50%
. Bea Bruske, President of the Canadian Labour Congress, stated that the US government's plan is another direct attack on Canadian workers and that its reckless actions will have an impact on the Canadian economy
. In a statement, Perrin Beatty, President and CEO of the Canadian Chamber of Commerce, said that disrupting the cross-border supply chain for steel and aluminum would be costly for both Canada and the US, and that doubling tariffs on steel and aluminum to 50% runs counter to North America's economic security.
Australian Prime Minister Albanese said on the 1st that the US's increase in steel and aluminum tariffs was "an act of economic self-harm by the US that will increase costs for US consumers."
The European Union warned on Monday that if Trump follows through on his latest tariff threats, such as imposing a 50% tariff on steel and aluminum products, the EU may accelerate the implementation of retaliatory measures.
