The United States has doubled its tariff rate on most imported steel and aluminium, with the new levies taking effect on Wednesday. The move marks a sharp escalation in Donald Trump’s global trade offensive, coinciding with a deadline for trading partners to submit their “best offers” in hopes of avoiding further punitive tariffs set to begin in early July.
Late on Tuesday, Trump signed an executive proclamation formalising his surprise announcement from the previous week. Under the new directive, existing tariffs on steel and aluminium imports — in place since March — were raised from 25 percent to 50 percent.
“We started at 25 and, after reviewing the data, found it had a strong impact, but further support was needed,” White House economic adviser Kevin Hassett said at a steel industry conference in Washington on Tuesday. “That’s why the 50 percent rate begins tomorrow.”
The increased tariffs apply to all trading partners except the United Kingdom, the only country so far to have reached a preliminary trade agreement with the US during a 90-day suspension of broader tariff actions.
While the UK is not among the top exporters of steel or aluminium to the US, its tariff rate will remain at 25 percent until at least July 9.
About 25 percent of steel used in the US is imported. The higher levies will particularly affect Canada and Mexico — the top and third-largest steel exporters to the US, respectively.
Canada is even more exposed on aluminium, accounting for roughly half of all US aluminium imports — more than double the combined volume of the next 10 exporters. The US sources about 50 percent of its aluminium from abroad.
Prime Minister Mark Carney’s office said Canada was “engaged in intensive and ongoing negotiations to remove these and other tariffs”.
Mexico’s Economy Minister Marcelo Ebrard reiterated that the measures were unjustified, particularly given that Mexico imports more steel from the US than it exports there.
“It makes no sense for the United States to impose tariffs on a product in which it holds a surplus,” he said, adding that Mexico would seek an exemption from the increased rates on Friday.
Although China is the world’s largest producer and exporter of steel, its shipments to the US remain minimal. The 25 percent tariffs imposed in 2018 had already priced most Chinese steel out of the US market.
Markets for both metals reacted sharply to the tariff hike, with aluminium particularly affected — premiums have more than doubled so far this year. However, given the limited spare capacity in domestic production, import volumes are unlikely to fall unless higher prices begin to suppress demand.
With time running short, the Trump administration is pressing countries to finalise their offers. The US Trade Representative (USTR) has asked partners to submit detailed proposals covering key areas such as tariffs and quotas for US industrial and agricultural exports, and plans to eliminate non-tariff barriers.
White House spokeswoman Karoline Leavitt confirmed the letter had been sent. “USTR sent this letter to all of our trading partners as a friendly reminder that the deadline is approaching,” she said on Tuesday.
The Trump administration has also requested commitments on digital trade, economic security, and other country-specific assurances, according to the letter.
