Trump Slaps 50% Tariffs on Steel and Aluminum—Trade Wars Escalate

Protectionism goes into overdrive as the White House doubles down on import taxes—just what global supply chains needed.

Heavy metals, heavier tariffs: The administration cranks up the heat on foreign producers, risking retaliatory measures that could ripple through markets.

Wall Street shrugs—another day, another trade barrier to arbitrage. Meanwhile, manufacturers brace for cost shocks while lobbyists dust off their 'economic security' talking points.

Trump’s Trade War Escalates With 50% Tariffs On Metal Imports

Executive Order Implementation and Scope

Trump doubles tariffs through an executive order that took effect immediately, and the MOVE raises rates from 25% to 50% for all countries except the UK. Higher tariffs “will more effectively counter foreign countries that continue to offload low-priced, excess steel and aluminum in the United States market and thereby undercut the competitiveness of the United States steel and aluminum industries”, the order said.

About a quarter of all steel used in the US is imported right now, with Canada and Mexico ranking first and third respectively in steel shipment volumes. The steel tariffs and aluminum tariffs now apply universally, except for Britain which maintains 25% rates until at least July 9th.

Trading Partners React to Escalated Trump Trade War

International partners have expressed immediate anger at the tariff increases, and officials are scrambling for negotiations. The office of Mark Carney, the Canadian prime minister, said Canada was “engaged in intensive and live negotiations to have these and other tariffs removed.”

Mexico’s economy minister Marcelo Ebrard stated:

Mexico imports more US steel than it exports, making the tariff logic questionable according to officials. Ebrard also said that Mexico WOULD on Friday seek an exemption from the increase.

Industry Impact as Trump Doubles Tariffs

The American steel industry supports the move, and major players are defending consumer price impacts. Lourenco Goncalves, CEO of Cleveland Cliffs and chairman of the American Iron and Steel Institute, said the tariff increase would only add $300 to car costs.

Goncalves stated:

However, industries relying on US imports face significant challenges right now. The Can Manufacturers Institute warns that domestic can makers import almost 80% of tin mill steel due to the cut in domestic production of that type of steel. It said the increase in tariffs will “further increase the cost of canned goods.”

White House spokesman Kush Desai said:

Economic Warnings and Job Market Effects

Spot steel prices have increased 20% or more since March tariffs, and aluminum tariffs are also driving price increases. Economic experts warn about broader employment effects beyond steel production at the time of writing.

Larry Summers, director of the National Economic Council during the Obama administration, stated:

Studies of 2018 tariffs found that for every steel job that was saved, there were 75 jobs lost elsewhere in manufacturing due to higher input costs.

National Security Justification

Trump emphasized national security during his Pittsburgh mill visit, where he announced the tariff doubling on Friday. The administration frames steel tariffs and aluminum tariffs as essential for defense-industrial base protection.

Trump stated:

Trump’s trade war continues to escalate as the administration pursues aggressive reshoring of critical manufacturing capabilities through these unprecedented tariff levels on US imports of steel and aluminum.