US President Donald Trump has signed an executive order doubling tariffs on steel and aluminium imports, raising the rates from 25% to a steep 50%. The new measure, which took effect Wednesday, marks the second time since March that import taxes on the vital industrial metals have been hiked, setting off alarm bells across global markets and within American manufacturing sectors.
Trump defended the move during a rally at a US Steel facility, insisting the decision was designed to “secure the future of the American steel industry.” He told the cheering crowd, “Nobody’s going to get around that… At 25%—they can get over that fence. At 50%, they can no longer get over the fence.”
However, critics say the aggressive tariff hike could severely disrupt global steel trade, damage US supply chains, and strain diplomatic ties. The US is the second-largest importer of steel globally, sourcing heavily from countries like Canada, Brazil, Mexico, and South Korea.
The UK, however, secured a carve-out from the new tariff increase, keeping duties on its metals at 25%. Trump said the exception reflected “ongoing trade discussions” with London. UK Trade Secretary Jonathan Reynolds said his office was “pleased” with the carve-out, noting continued cooperation with the US to fully remove the tariffs. Still, UK Steel’s Director General, Gareth Stace, warned that the March tariffs had already disrupted trade, and a 50% rate would have been “catastrophic.”
The announcement stunned many US businesses, including small manufacturers like Maryland’s Independent Can Co., which imports European steel to make decorative tins. CEO Rick Huether expressed disbelief, saying, “There’s a lot of chaos.” He had already halted investments and raised prices earlier this year in response to tariff uncertainty.
Chad Bartusek, who oversees supply chain management at Illinois-based Drill Rod & Tool Steels, is facing a dramatic increase in costs. A shipment that would have cost him $72,000 in tariffs under the 25% rate is now expected to incur nearly $145,000 in duties. “It’s one punch after the other,” he said. “Hopefully, this settles down quickly.”
Economists warn the consequences could extend far beyond the metal industry. Erica York of the Tax Foundation said the policy risks widespread job losses, noting that tariffs on industrial inputs like steel and aluminium are among the most damaging. “It’s very foolish to double down on this type of tariff in particular,” she said.
A 2020 analysis estimated that tariffs imposed during Trump’s first term created about 1,000 jobs in the steel industry but cost the broader U.S. economy around 75,000 jobs, particularly in construction and manufacturing sectors.
Internationally, the move threatens to trigger retaliatory measures. Canada and the European Union, both of which were affected by the March tariffs, have prepared to respond in kind. European Commission spokesperson Olof Gill confirmed that “intense talks” with the US are ongoing in a bid to avert escalation. “We really hope the Americans will roll back on this latest tariff threat,” he said.
As Trump seeks to reassert his America First trade policies, businesses and allies alike are grappling with rising uncertainty and financial strain. Whether the tariff hikes are a long-term strategy or another hardline negotiating tactic remains to be seen. But one thing is clear: the economic and diplomatic ripples are already being felt across both sides of the Atlantic.
Chioma Kalu
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